DS Smith Explores Selling Plastics Division After Recording Bumper Profits in H1

SEATTLE (Scrap Monster): London-based packaging major DS Smith Plc declared 32% surge in adjusted operating profit for the half year results 2018/19 for the six-month period ending 31 October, 2018. The profit boost was mainly triggered by high box prices. Excluding plastics business, the company’s pre-tax profits skyrocketed by 27% over the previous year. Half-yearly revenues reported 15% jump.

Announcing the result, the company announced that its board, after initial review of its plastics division, has come to the conclusion that the division is an attractive asset with huge growth prospects. Consequently, it has decided to explore options to sell the division. DS Smith had launched a strategic review of its plastics business in June this year. The business is valued at around $637 million.

The company clarified that the decision to sell the division is not in response to environmental impacts of plastics.  

The acquired assets, including Interstate Resources continued to deliver excellent performance. Also, it expects to complete the acquisition of Europac over the forthcoming months. The corrugated box volumes in the UK remained strong during this period.

Miles Roberts, Chief Executive, DS Smith stated that the company has been able to fully recover all of the raw material and the rising input costs incurred over the six-month period. The volume growth has exceeded the market. The company maintains positive outlook and expects good momentum in the second half, Roberts said.