DS Smith has released its half-year results for the six months to 31 October 2024.
The company said results were in-line performance despite challenging market. Details included:
- Adjusted operating profit of £221m (H1 2023/24: £365m), in line with expectations, despite ongoing challenging market conditions;
- Like for like box volume growth of 2%, coupled with 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;
- Continued capital and operational investment to support customers and drive long term productivity and environmental efficiency;
- DS Smith and IP shareholders voted in favour of the Recommended all-share offer from International Paper to combine the businesses.
“We have delivered a solid performance, with profitability in line with our expectations, despite a continued challenging market environment. We have maintained our relentless focus on customer service, product quality and innovation, together with significant cost and productivity initiatives, to mitigate the impact of a softer than expected overall market,” said Miles Roberts, Chief Executive. “Looking forward, whilst recognising the recent paper price weakness, we continue to expect modest growth in packaging volumes and increasing sequential prices to recover higher input costs. We announced in April a recommended offer from International Paper to create a truly international sustainable packaging solutions leader that is well positioned in attractive and growing markets across Europe and North America and I am delighted that both DS Smith and International Paper shareholders overwhelmingly voted in favour of the transaction. We are working extensively with International Paper and expect completion in the first quarter of 2025. Our planning for the integration of our businesses is progressing well, and we remain excited about the opportunities for customers, employees and shareholders.”
