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DS Smith sees H1 operating profit 'materially' ahead of last year

By Michele Maatouk

Date: Tuesday 06 Nov 2018

DS Smith sees H1 operating profit 'materially' ahead of last year

(Sharecast News) - Packaging company DS Smith said on Tuesday that it expects first-half return on sales and adjusted operating profit to be "materially" ahead of the same period a year ago as the business continues to perform in line with its expectations.
In a pre-close trading update for the six months to the end of October, the company noted the recovery of increased input costs earlier in the year and good volume growth from its "highly resilient" fast-moving consumer goods business.

DS Smith said the integration of Interstate Resources - which it purchased last year - continues to go "very well", with major customers now procuring from the group in both Europe and the US.

The company said it remains highly focussed on cash management and expects cash flow from operations to be "significantly" ahead of the prior period. Meanwhile, the previously announced strategic review of its plastics division is progressing well.

In addition, the group said the regulatory process for the proposed acquisition of Europac continues to be in line with its expectations, with completion due by the end of the calendar year.

"We are excited about the prospects for this business and the opportunity for DS Smith to expand further in the important growth market of Iberia," it said.

Chief executive Miles Roberts said: "We are very pleased with the performance in the half year, in particular the margin development, and the continued excellent progress and integration of Interstate Resources.

"We continue to see strong customer support to our innovative sustainable packaging, responding to the dynamic requirements of our customers. We expect good ongoing volume and market share growth, look forward to the completion of Europac and view the future with confidence."



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