Turnover and profit up
DS Smith has released its full year results. For the 12 months to 30th April 2019, the company generated £6,171m in sales, up 12% on the previous year. Profit before tax was £350m, +35% on the previous year. The full report can be viewed here.
Miles Roberts, Group Chief Executive, commented, “This strong set of results from DS Smith demonstrates the company’s growing scale and strategic progress in key markets. We are continuing to gain market share throughout Europe, particularly among more resilient FMCG customers and our US business is performing well following our recent acquisition there. I am very pleased to be able to raise our medium-term return on sales target, up to 10-12%, as well as adding to our cost synergy estimate following successful initial progress in integrating Europac, which we acquired during the year. DS Smith is increasingly well-placed to capitalise on rising consumer demand for sustainable corrugated packaging as well as greater convenience from both e-commerce and more traditional retail channels. The underlying drivers of demand for sustainable corrugated packaging and our differentiated offering give us confidence in ongoing volume and market share growth. 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. While volatility in the macro-economic environment and input costs remains, our focus on pricing discipline, operating efficiencies and cash flows supports our expectations of further good progress in the coming year.”