DS Smith lifts FY outlook after strong first half

In the six months to the end of October, pre-tax profit jumped 80% to £315m on revenue of £4.3bn, up 28% on the same period a year earlier. Adjusted operating profit was ahead 51% at £418m and the dividend per share was lifted 25% to 6p.

Revenues were driven by higher average selling prices, reflecting the recovery of paper and other input costs, DS Smith said.

Box volumes dipped 3% over the period, reflecting strong sales volumes in the first half of 2021/22 and the current "volatile" economic environment.

Chief executive Miles Roberts said: "The macroeconomic outlook for the rest of the financial year remains challenging. However, we have an excellent customer base, efficient high-quality assets, dedicated colleagues and a strong balance sheet allowing continued organic investment to support our customers.

"These benefits, combined with current momentum in the business, mean we now expect FY23 performance to be ahead of previous expectations with H2 being consistent with H1."