18th Jun 2018 08:42
LONDON (Alliance News) - FTSE 100-listed DS Smith PLC on Monday said strong volume growth, higher sales prices and contribution from acquisitions led to a rise in profit and revenue for 2018 financial year.
The packaging company, which has cut its total dividend payout, also said that volume growth momentum has continued into the new financial year and that it continues to deliver in line with its previously announced medium-term targets for volume growth, return on sales and operating cash flow.
For the 12 months to April 30, the company recorded pretax profit of GBP292 million, up 21% from GBP264 million in the year ago period, on a revenue of GBP5.76 billion and GBP4.78 billion, respectively.
Profit, before tax and exceptional items, grew 21% to GBP473 million from GBP391 million.
"We are gaining market share and showing strong margin performance, offsetting significant input cost headwinds. Our box volume growth continues to be impressive at just over 5%, demonstrating the continuing demand for our sustainable, high-quality products," said Chief Executive Miles Roberts.
The company said all geographic regions have again reported growth, with particularly strong regional volumes in Germany, Switzerland, Italy, Northern Europe, Central Europe and and North America.
DS Smith declared a final dividend of 9.8 pence per share, down from 10.6p paid a year ago. Total payout for the 2018 financial year stood at 14.7p, down from 15.2p paid a year ago.
The company said the final dividend payment is in line with its progressive dividend policy, where dividend cover is between 2.0 and 2.5 times, through the cycle.
DS Smith shares were trading 1.4% lower at 555.80p on Monday morning.
Related Shares:
Smith (DS)