DS Smith forecasts modest packaging volume growth after HY profit slump (updated)
05/12/2024 07:41
(Adds outlook in paragraph 1, sector context, details in
paragraphs 2 and 3)
Dec 5 (Reuters) - Britain's DS Smith SMDS.L on
Thursday posted a 39% slump in half-year profit, in line with
the market view, hit by weak packaging prices, and forecast
modest growth in packaging volumes and price hikes to recover
higher input costs.
Paper and packaging firms globally are witnessing increasing
consolidation at a time when the sector is slowly recovering
from a decline in demand due to customer destocking following a
boom in packaging sales during the pandemic.
London-listed DS Smith, which provides packaging, paper and
recycling services to companies including Amazon AMZN.O and
Unilever ULVR.L , said the group experienced higher input
costs, notably fibre and paper.
The company, which has agreed to a $7.20 billion all-share
takeover by U.S. rival International Paper IP.N , posted
adjusted operating profit from continuing operations for the six
months to Oct. 31 of 221 million pounds ($281.2 million), in
line with a company-compiled average analysts' estimates.
DS Smith reiterated that the IP deal was expected to be
completed in the first quarter of 2025, making Thursday's
half-year financials potentially the last standalone results for
the FTSE 100 .FTSE firm.
($1 = 0.7859 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Rashmi Aich)
((abyjose.koilparambil@thomsonreuters.com))