Packaging And Design

UK's DS Smith Raises Dividend, Upbeat On Annual Performance

By Donna Ahern
UK's DS Smith Raises Dividend, Upbeat On Annual Performance

DS Smith on Thursday raised its interim dividend by 25% and forecast a stronger-than-expected annual performance, after the British cardboard maker posted an increase in its first-half profit due to higher box prices and tight cost controls.

The packaging giant, which supplies packaging to clients including the likes of Amazon and Unilever, reported a 51% jump in adjusted operating profit from continuing operations at £418 million ($509.8 million) for the six months ended 31 October.

Profit Surge 

The profit surge comes despite box volumes declining 3% in the first-half, hit by a weaker-than-expected industrial sector and economic challenges — particularly in the UK and Germany, the company said.

"The macro-economic outlook for the rest of the financial year remains challenging," Miles Roberts, chief executive officer said in a statement.

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The company, which provides packaging, paper and recycling services, had expected half-year adjusted operating profit of at least £400 million. It had earned £276 million a year earlier.

Read More: Britain's DS Smith Sees Annual Performance Ahead Of Expectations

News by Reuters edited by Donna Ahern Checkout. For more packaging stories click here. Click subscribe to sign up for the Checkout print edition

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