DS Smith interim profit drops on restructuring costs

DS Smith posted a drop in first half pre-tax profit and revenue as the packaging company took a hit from restructuring costs.

For the six months to the end of October, pre-tax profit fell 26% to £91m as the group booked £48m of exceptional costs, namely related to the closure of its Wansborough paper mill and other restructuring activity.

Meanwhile, revenue slipped 1% from the first half of last year to £1.95bn. At constant currency, however, revenue was up 6%.

DS Smith declared an interim dividend of 4p per share, up from 3.7% in 2014.

Chief executive Miles Roberts said: “We are pleased with performance in the first half of this financial year. We have continued to grow volumes in excess of the market and GDP, with our value-added offering again driving progress in margins and returns.

“Our outlook remains positive as the business continues to grow, despite the ongoing challenging economic environment in some markets. The progress we have made over the period, combined with the opportunities available for further growth, gives the board confidence in the prospects for the business, in line with the group's medium-term financial targets.”