Packaging firm DS Smith has reported a decline in adjusted operating profit to £221 million (€267.01 million) in the first half of its financial year to 31 October 2024 from £365 million (€441 million) in the year-ago period.
DS Smith added that its performance was 'in line' with expectations amid challenging market conditions.
The company witnessed like-for-like box volume growth of 2% in this period.
It attributed the decline in adjusted profit to lower packaging prices.
It added that higher input costs, notably fibre and paper, were broadly offset by cost reduction and productivity initiatives implemented by the company.
'A Solid Performance'
Miles Roberts, group chief executive of DS Smith, stated, "We have delivered a solid performance, with profitability in line with our expectations, despite a continued challenging market environment.
"We have maintained our relentless focus on customer service, product quality and innovation, together with significant cost and productivity initiatives, to mitigate the impact of a softer-than-expected overall market."
Roberts added, "Looking forward, whilst recognising the recent paper price weakness, we continue to expect modest growth in packaging volumes and increasing sequential prices to recover higher input costs."
First-Half Highlights
DS Smith has also announced an interim dividend of 6.2 pence per share.
The company continued to invest in supporting its customers and driving long-term productivity and environmental efficiency within the group.
DS Smith and IP shareholders voted in favour of the recommended all-share offer from International Paper.
In April of this year, International Paper said that it has agreed to an all-share deal to buy DS Smith, valuing the British paper and packaging firm at £5.8 billion (€7.01 billion).
The deal is expected to close in the first quarter of 2025.
"Our planning for the integration of our businesses is progressing well, and we remain excited about the opportunities for customers, employees and shareholders," Roberts commented.
