DS Smith profit jumps 21% thanks to acquisitions, recovering paper prices

Paper and packaging group DS Smith posted a 21% jump in full-year adjusted pre-tax profit on Monday amid growth in all regions.

In the 12 months to 30 April, adjusted pre-tax profit rose to £473m, while revenue was also up 21%, to £5.77bn. The group said it benefited from the recovery of paper prices and growth from acquisitions, which more than offset input cost headwinds. In addition, currency translation effects also lent a hand.

During the year, it bought Interstate Resources in the US and EcoPack and EcoPaper in Romania. DS Smith said it was "delighted" with the initial performance and integration of what is now its North America packaging and paper business.

"The positive response from customers to this acquisition is reflected in the strong volume growth since ownership," it said.

Organic corrugated box volumes were up 5.2%, with growth in all regions, although volumes in DCH and North Europe, Central Europe and Italy and North America were particularly strong. Growth came from its multinational customers, particularly e-commerce and shelf ready packaging.

Chief executive Miles Roberts said: "DS Smith is reporting a strong set of numbers for the full year, showing that we are continuing to succeed in a very dynamic market. Through our close customer relationships and innovation, we are capitalising on secular underlying growth trends such as the rise in e-commerce, desire for sustainable products and the evolution in consumer shopping habits.

"We are gaining market share and showing strong margin performance, offsetting significant input cost headwinds. Our box volume growth continues to be impressive at just over 5%, demonstrating the continuing demand for our sustainable, high-quality products."