Packaging maker DS Smith shares on the rise as profits soar
DS Smith shares rose five per cent today on the news it enjoyed profit boost of nearly one-third last year.
The packaging manufacturer said it had plans in place to stockpile goods ahead of Britain’s planned exit from the EU at the end of October.
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It said it expected disruption to its operations to be “relatively contained”.
The firm makes corrugated cardboard, recycled paper and plastic packaging.
It posted a 31 per cent rise in full-year pre tax profit. Box volumes growth slowed, however. This was because of weakness in export markets during the second half of the year.
“We saw some volume weakness in certain export-led markets in the second half of 2018/19, including Germany, but we expect this to improve during the current year,” chief executive Miles Roberts said.
DS Smith raised its medium-term margin targets to between 10 per cent and 12 per cent. This came after it recorded a 10.2 per cent margin this year.
The margin beat guidance of between eight per cent and 10 per cent.
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The firm bought Spanish rival Europac for €1.9bn (£1.7bn) last year. It raised its savings target from the deal to €70m, up from €50m previously.
DS Smith supplies packaging to firms including Amazon, Next, Aldi, Tesco, Primark and Ikea.