3rd Dec 2015 07:29
LONDON (Alliance News) - Packaging company DS Smith PLC on Thursday said its pretax profit dipped in the first half due to restructuring costs, and revenue also was held back by the weak euro, though the group's underlying performance was solid.
The FTSE 250-listed company, which makes packaging for consumer products and recycled packaging products, said its pretax profit for the six months to the end of October was GBP91.0 million, down from GBP123.0 million a year earlier, as the group booked GBP48.0 million in exceptional costs, mostly related to closing its Wansborough paper mill and other restructuring activity in the UK and northern Europe.
Stripping out the restructuring charges, pretax profit for the group ticked up to GBP139.0 million from GBP133.0 million.
Revenue in the half slipped marginally to GBP1.95 billion from GBP1.97 billion, as the group took a hit from the weak euro. Constant currency revenue rose 6.0%. Corrugated box volumes rose 3.1% in the half, ahead of the company's expectations and benefiting from acquisitions the group made in the half.
The group said it would pay an interim dividend of 4.0 pence per share, up from 3.7p.
"Our outlook remains positive as the business continues to grow, despite the ongoing challenging economic environment in some markets. The progress we have made over the period, combined with the opportunities available for further growth, gives the Board confidence in the prospects for the business, in line with the group's medium-term financial targets," said Chief Executive Miles Roberts.
By Sam Unsted; [email protected]; @SamUAtAlliance
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