DS Smith Pre-tax Profit Down; Expects Annual Results In Line With Expectations

DS Smith Plc (SMDS.L), a British packaging company, on Thursday reported a decline in pre-tax profit for the first-half, amidst a fall in revenue, mainly due to a drop in box volumes and lower selling prices across the Group.

In addition, the company expects to report its full-year results in line with expectations.

For the six-month period to October 31, DS Smith reported a pre-tax income of 268 million pounds, lesser than 315 million pounds, recorded for the same period last year.

Pre-tax income before adjusting items dropped to 268 million pounds from previous year’s 322 million pounds.

Net profit stood at 204 million pounds or 14.8 pence per share, lower than last year’s 232 million pounds or 16.8 pence per share.

Net income before adjusting items was at 204 million pounds, lesser than 239 million pounds a year ago.

Operating profit was at 314 million pounds, compared with 349 million pounds in 2022.

Operating earnings before adjusting items stood at 314 million pounds as against 356 million pounds a year ago.

Revenue was 3.513 billion pounds, down from last year’s 4.299 billion pounds, due to a 4.7 percent decline in box volumes. Packaging prices were also down 273 million pounds, around 9 percent, with the balance reflecting lower external paper, recyclate and energy sales.

DS Smith will pay an interim dividend of 6 pence per share, to be paid on January 31, 2024 to shareholders on the register as of December 15, 2023.

Looking ahead, the Group said: “Over the medium term, the structural growth drivers of plastic replacement and changing retail formats remain strong and we expect market corrugated volumes to return to being in line with GDP growth rates.”

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