DS Smith Profit Jumps 15% On E-Commerce Boost
UK-based packaging group DS Smith Plc reported a 15% jump in first-half operating profit on Thursday, bolstered by growing demand from online retailers and cost savings from its acquisition of Spanish rival Europac last year.
The company, whose packaging products are used by companies including online giant Amazon, said adjusted operating profit for the six months ended Oct. 31 was £351 million (€416.1 million), up 15% on a reported basis.
Its Europe division posted 'good organic profit growth', the company said.
"Our leadership in e-commerce and sustainable packaging solutions has enabled us to perform well despite a difficult macro environment and volatility in paper pricing," chief executive Miles Roberts said.
Roberts added that the business continues to capitalise on the "strong long-term growth drivers of fibre-based packaging, with our industry-leading innovation driving differentiation in the market.
"Assuming current macro-economic conditions prevail, we anticipate an acceleration of volume growth in the second half of the year which, together with the resilience of our business model, supports our expectation of further growth in the year."