Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Packaging And Design

DS Smith Expects First-Half Profit To Be 'Materially Ahead'

Packaging company DS Smith said it expects adjusted operating profit for the first half of the year to be 'materially ahead' from last year as it was able to sell more boxes at higher prices to offset higher production costs.

The packaging company, which supplies corrugated cardboard, recycled paper and plastic packaging to firms including Amazon.com Inc, said the strategic review of its plastics division was progressing well.

DS Smith, which supplies brands such as Aldi, Tesco, Primark, Auchan and IKEA, has been increasing prices for its boxes to offset higher pulp and paper costs. In September, DS Smith said its margins improved as it sold more boxes at higher prices.

Good Volume Growth

Its consumer goods-focused packaging division has also seen good volume growth in the half year, DS Smith said, adding that overall cash flow will be significantly ahead of last year's.

The 80-year old company has grown exponentially through acquisitions over the last couple of years, driven by ever-growing demand from e-commerce companies for its recyclable packaging material.

It acquired Interstate Resources in 2017 to expand into the United States, and recently acquired Spanish rival Europac for 2 billion pounds (€2.3 billion), its biggest ever deal.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days