DS Smith's annual profits edge higher

27th Jun 2013 07:39

Paper and plastic packaging company DS Smith saw pre-tax profits soar 51 per cent to 166.2m pounds following a "transformational year". Revenue for the year to end of April jumped 86% to £3.6bn, boosted by the acquisition and integration of SCA Packaging. The firm bought SCA Packaging for €1.6bn in June 2012. It has doubled the size of the business, making it a leading provider of corrugated packaging across Europe. The company said it experienced strong performance in packaging despite a challenging economic environment with volume in line with the medium term financial target of gross domestic product plus 1.0%.Adjusted operating profit grew 77% to £250.9m while earnings per share was up 36% to 17.4p.Free cash flow climbed 186% to £270.4m. "We are delighted with the results announced today. This has been a transformational year for DS Smith during which we have made substantial operating, financial and strategic progress, following the acquisition and successful integration of SCA Packaging, providing a strong platform for further growth," said Miles Roberts, Chief Executive. The group rewarded shareholders with a 36% rise in its dividend at 8.0p per share.RD