DS Smith Announces 6% Revenue Increase And US Acquisition
Packaging firm DS Smith has reported a 6% increase in revenue, to £4,781 million, for the fiscal year ending 30 April 2017.
The company has also announced that it is planning to acquire US paper and packaging business Interstate Resources in a $920 million deal.
“We are delighted to report another year of good growth for DS Smith, delivered through a combination of acquisitions and organic development,” said Miles Roberts, group chief executive.
“We have expanded our customer offering during the year, both geographically and through our continuous focus on innovative solutions for our customers, and delivered against all our medium-term financial targets. This progress has continued into the new financial year. Full recovery of the recent paper price rises is progressing well and as expected.”
DS Smith recorded a 3.2% increase in volume for its corrugated cardboard-box products last year, adding that all regions experienced growth.
Adjusted operating profit increased by 5% on a constant-currency basis, to £443 million, driven by the contribution from volume growth, while adjusted earnings per share increased by 7% on a constant-currency basis, to £0.325.
“Although economic conditions remain uncertain, our innovation-led offering, the scale of our operations, and the momentum in the business gives us confidence in further growth and sustainable returns in the years ahead,” added Roberts.
The company completed five acquisitions last year, totalling £85 million, focusing on display packaging and expanding in Iberia.
Now, DS Smith has announced its plans to acquire an 80% share of Interstate Resources, which operates 19 production sites in the US, with approximately 1,500 employees.
“We have seen significant customer pull for our innovative packaging solutions in the US, and are excited by the opportunity to grow and support our customers’ needs over this large and growing market,” said Roberts.
“It is a further important step in our strategy, further building a higher-quality, higher-margin group with more growth potential,” he added.
© 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.