DS Smith reports fiscal year revenue growth

DS Smith reports fiscal year revenue growth

U.K.-based packaging firm cites sustainability as crucial strategy.

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June 20, 2018
Edited by Brian Taylor
Europe Financial Paper

United Kingdom-based packaging and containerboard maker DS Smith has reported double-digit revenue growth for its fiscal year 2017-2018, which ended April 30, 2018.

The company, which indicates it grew organically and by acquisition, has reported 17 percent revenue growth (measured in constant currency) and 16 percent operating profit growth (by the same measure) compared with the previous fiscal year.

“DS Smith is reporting a strong set of numbers for the full year, showing that we are continuing to succeed in a very dynamic market,” states Miles Roberts, DS Smith group chief executive. “Through our close customer relationships and innovation, we are capitalizing on secular underlying growth trends such as the rise in e-commerce, desire for sustainable products and the evolution in consumer shopping habits.”

In its comments on the recently completed fiscal year, the company states, “One part of the DS Smith strategy is to lead the way in sustainability. Corrugated packaging is a key part of the sustainable economy, providing essential protection to products as they are transported and, at the end of use, it is fully recyclable. Corrugated packaging is also substantially constructed from recycled material, as are many of our plastic packaging products.”

The company goes on to say, “Our recycling business works with customers across Europe to improve their recycling operations and overall environmental performance. In calendar 2017, compared to calendar 2016, on a restated basis to reflect acquisitions, our CO2 equivalent emissions, relative to production, have increased by five percent, reflecting an increase in energy usage relating to increased volume growth and the impact of lightweighting our paper and packaging.”

Regarding DS Smith’s new fiscal year, which started May 1, the company states, “The current year has started well, with the volume growth momentum seen in 2017/18 continuing into the new financial year and the ongoing recovery of the paper price rises announced earlier this calendar year progressing as expected.”

Pointing again to sustainability factors, the company adds, “The drivers for growth of sustainable packaging in a dynamic consumer and retail environment are more relevant than ever. Our differentiated position with customers, built on our geographic scale and innovation-led expertise reinforces our confidence in the prospects for the business.”

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