Packaging firm DS Smith has posted an 80% increase in first-half profit and declared a higher interim dividend, helped by strong demand from FMCG businesses and resilient supplies to the e-commerce market.
The London-based company, which provides packaging, paper and recycling services, navigated the pandemic-led disruptions better as it shifted to tapping a growing demand for recyclable boxes while also benefiting from the boom in online shopping.
Pretax profit at DS Smith, which supplies packaging products to customers including Amazon, Nestle and Unilever, rose to £175 million (€204 million), from £97 million (€113 million) a year earlier.
'Very Dynamic Market'
"We are continuing to benefit from a very dynamic market with demand for packaging for different retail solutions evolving rapidly. [...] Our supply chains have remained secure and the significant increases in input costs have been mitigated," chief executive Miles Roberts said in a statement.
The company increased its interim dividend by 20% to 4.8 pence per share, and said it was confident about delivering a "significant improvement" in profitability during the second half of the fiscal year, in line with its expectations.
Revenue for the six months ended Oct. 31 rose 16% to £3.36 billion (€3.92 billion).
Roberts added that the group's scale, geographic footprint, sustainability and innovation focus,"position us very well for continued volume and market share growth.
"Together with pricing momentum, this underpins our confidence to deliver a significant improvement in profitability during the second half of this year in line with our expectations and towards our medium-term targets".
News by Reuters, edited by ESM. For more Packaging news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.