DS Smith Reports First-Half Revenue Growth, With Strong Demand
British packaging firm DS Smith has reported that revenue grew by 19% to £2.8 billion in the first half of its financial year.
The company saw strong organic corrugated box volume growth of 5.2% during this period, with adjusted operating profit of £251 million (+11%), and adjusted EPS of £0.174 (+6%).
“We are delighted with our volume growth which has significantly accelerated to over 5%, fuelled by success with e-commerce and pan-European customers," said Miles Roberts, group chief executive.
"Structural shifts, including changes in consumer preferences, the increased relevance of our packaging at point-of-sale, and the rise in e-commerce are all underpinning the growth of packaging," he added.
"The strong customer demand has driven performance and our operating margin is in line with our expectations, despite the substantial input cost pressures in the period, which we continue to recover as planned."
DS Smith says that it is continuing to grow its business through a number of acquisitions and investments.
The company notes that its integration of US-based Interstate Resources, which it acquired in July, is progressing ahead of expectations, while its proposed acquisitions in Romania are on track to complete in January 2018.
Looking ahead, the packaging group says that the outlook remains positive as its begins the second half of the year with 'good momentum'.
"We continue to see exciting opportunities for growth, both in Europe and in North America, and, accordingly, the Board remains confident about the outlook for DS Smith,” added Roberts.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.