DS Smith profits rise despite higher costs

9th Dec 2010 08:22

Shares in packaging group DS Smith rose after it announced higher revenues and profits in the first half and said the strong performance had continued despite rising input costs.Pre-tax profits in the six months to 31 October climbed by 17.5% from the same period the previous year to £40.2m. Revenues by 15.3% to £1.17bn.'These results reflect the strong volume and revenue growth in the recycled packaging business, driven by our revised strategic focus on customer service, innovation, quality and reducing the environmental impact of our product,' said chief executive Miles Roberts. 'This focus has allowed us to recover the significant increases in the cost of our raw materials and energy, and maintain our margins despite the usual three to six month delay.' A business review has confirmed the potential of focusing on recycled packaging that can help customers cut costs, Roberts said. The focus on recycled packaging helps offset rising input prices, the company said.