DS Smith posts jump in full-year profits, gains market share

Packaging specialist DS Smith posted an "excellent" set of full-year results despite what it termed as a "challenging economic environment".

"Our strong customer relationships in the resilient [Fast Moving Consumer Goods} sector, together with the investments we are making to drive cost efficiencies and growth, give us confidence for the future."

For the 12 months through30 April, the company posted an 11% jump in revenues to £8.2bn on a reported basis.

Adjusted profits before tax on the other hand soared 75% to £661m, for a 40% surge in its adjusted basic earnings per share to 43.0p.

Miles also highlighted the company's progress during the year on cutting its environmental footprint, having replaced about 300m pieces of plastic with fibre-based alternatives.

That, he said, had been rewarded by clients with market share gains.

Management had also continued to manage costs and risks, at the same time that it pushed through price increases in response to multi-year inflation.

DS Smith also reported "good" free cash flow, which helped it cut its leverage, or net debt as a proportion of operating profits, from 1.6 to 1.3.

In turn, the full-year dividend payout was raised by a fifth to 18.0p.

-- More to follow --