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December 9, 2021

DS Smith reports 16% revenue increase for first half of 2021-22

The company has increased its interim dividend by 20% to £0.05 a share.

UK-based sustainable packaging company DS Smith has reported a 16% increase in revenue on a reported basis to £3.36bn ($4.43bn) for the first half (H1) of 2021-22.

In the six months to 31 October, the company’s revenue for the period grew by 22% on a constant currency basis.

DS Smith said that this increase was driven by packaging volume growth and higher selling prices.

The company’s adjusted operating profit grew by 20% to £276m, while its pre-tax profit rose by 80% to £175m.

Its basic adjusted earnings per share (EPS) were £0.14 and its basic EPS from continuing operations were £0.10, up by 81% from six months earlier.

DS Smith chief executive Miles Roberts said: “We are continuing to benefit from a very dynamic market, with demand for packaging for different retail solutions evolving rapidly and COP26 intensifying the desire for sustainable packaging solutions for the circular economy.

“In a challenging operating environment, I am pleased to see good progress.

“Our supply chains have remained secure and the significant increases in input costs have been mitigated by effective hedging of energy cost, our long-term supplier agreements and raising packaging prices.

“Combined with strong volume growth, this has significantly increased our profit, with continuing good progress recovering from the impacts of Covid-19.”

DS Smith has increased its interim dividend for this year by 20% to £0.05 a share.

For the rest of the year, the company hopes to increase its profitability to meet its medium-term targets.

Roberts added: “We have built a business to benefit from the significant structural growth drivers within fibre-based corrugated packaging.

“These benefits, combined with our scale, geographic footprint, sustainability and innovation focus, position us very well for continued volume and market share growth.”

In October, DS Smith opened its first hybrid Customer Innovation Hub in Lisbon, Portugal.

The facility will be used to host innovation and design sessions for customers in face-to-face, online and hybrid settings.

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