The company has released its half-year results for the fiscal year 2024/25 (April-October). It reported an adjusted operating income of £221 million, down from £365 million in the same period last year.
“Despite these challenges, DS Smith experienced a 2% growth in box volumes. The company emphasized its commitment to customer service, quality, and innovation. We are navigating a tough market environment, but our focus on operational efficiency and customer satisfaction remains unwavering,” says Miles Roberts, CEO of the company.
The company faced higher input costs, particularly for fibre and paper, which were largely offset by cost reduction and productivity initiatives.
Additionally, DS Smith incurred £75 million in transaction costs related to its merger with International Paper, expected to be completed in the first quarter of 2025.
“We continue to invest in our operations to support long-term productivity and environmental efficiency,” Miles Roberts added.
In-line performance despite challenging market
- Adjusted operating profit of £221m (H1 2023/24: £365m), in line with our expectations, despite ongoing challenging market conditions
- Like for like box volume growth of 2%, coupled with relentless focus on customer service, quality and innovation
- Lower adjusted profit driven by the expected lower packaging prices
- Higher input costs, notably fibre and paper, broadly offset by cost reduction and productivity initiatives
- £75m of International Paper transaction costs reflected in statutory profits
- Interim dividend 6.2 pence per share
- Continued capital and operational investment to support our customers and drive long term productivity and environmental efficiency
- DS Smith and IP shareholders overwhelmingly voted in favour of the Recommended all-share offer from International Paper to combine the businesses and create a truly international sustainable packaging solutions leader – completion expected Q1 2025
For more details, you can read the full report HERE.
corruga.expert
