22nd Jun 2023 08:28
(Alliance News) - DS Smith PLC on Thursday reported growth in annual profit, with cost control "more than offsetting volume declines" as the packaging firm weathered rampant inflation.
London-based DS Smith said its pretax profit for the year that ended April 30 jumped by 75% to GBP661 million from GBP378 million the prior year.
Revenue increased by 14% to GBP8.22 billion from GBP7.24 billion the previous year, despite the challenging economic environment.
Chief Executive Miles Roberts said: "Our operational, environmental and financial performances have all been strong through the year. Our service levels have remained very high, supporting our customers through our robust and flexible supply chain."
The company said its cost and risk management, combined with price increases driven by inflation, more than offset reduced volumes in the year.
DS Smith increased its final dividend per share by 18% to 12.0 pence, from 10.2p the prior year. The company's total dividend per share increased by 20% to 18.0p from 15.0p the year before.
"While economic conditions have continued to be volatile and box volumes have remained lower than normal, trading for the year to date is in line with our expectations," DS Smith said.
"Our strong customer relationships in the resilient fast moving consumer goods sector, together with the investments we are making to drive cost efficiencies and growth, give us confidence in the future."
Shares in DS Smith were largely flat at 290.40 pence in London on Thursday morning.
By Will Neill, Alliance News reporter
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