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Paper Recycling December 06, 2019 04:30:23 PM

DS Smith’s Profitable Growth Driven by Robust Business Model

Paul Ploumis
ScrapMonster Author
The corrugated box volumes recorded marginal growth of 0.7%, in the midst of challenging and uncertain economic situation.

DS Smith’s Profitable Growth Driven by Robust Business Model

SEATTLE (Scrap Monster): DS Smith reported half-yearly results for the period ending 31st October, 2019. The robust business model of the company delivered printable growth during this period.

According to company press release, the company reported record profitability and return on sales despite economic headwinds. It reported 4% revenue growth over the comparable period last year. The adjusted operating profit surged higher by 15%. The profit before tax and adjusted EPS rose by 31% and 5% respectively. The return on sales recorded a rise by 110 bps.

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The corrugated box volumes recorded marginal growth of 0.7%, in the midst of challenging and uncertain economic situation. The corrugated box volume growth among multi-national FMCG customers remained significantly higher than the average volume growth rate. Box prices continued to remain strong. The company continued to grow its market share within Europe. The domestic business within North America continued to perform well.

Commenting on the results, Miles Roberts, Group Chief Executive stated that the improved performance was mainly driven by its ongoing leadership in e-commerce and sustainable packaging solutions. The company has been able to deepen its relationships with FMCG customers and grow its market share. DS Smith will continue to capitalise on the strong long-term growth drivers of fibre-based packaging, he added.

 

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