DS Smith share price: Group reports rise in FY revenue and profits

Company says current year started well

DS Smith share price: Group reports rise in FY revenue and profits

DS Smith (LON:SMDS) saw its revenue and profits rise last year, the blue-chip packaging group has said. The results update comes after the company recently inked a deal to buy Spain’s Europac for €1.9 billion (£1.66 billion) in an effort to boost its position in western Europe.

DS Smith’s share price has been subdued in today’s session, having lost 0.28 percent to 562.20p as of 10:18 BST. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index having inched 0.02 percent higher to 7,635.04 points. The group’s shares have added more than 23 percent to their value over the past year, as compared with about a 2.2-percent rise in the Footsie.

DS Smith posts FY results

DS Smith announced in a statement this morning that its revenue had jumped 17 percent to £5.77 billion in the 12 months ended April 30, while the group’s adjusted operating profit had come in 16 percent higher at £530 million during the reported period.

The company’s chief executive Miles Roberts commented in the statement that the group was  “capitalising on secular underlying growth trends such as the rise in e-commerce”.

“We are gaining market share and showing strong margin performance, offsetting significant input cost headwinds,” Roberts added.

DS Smith further noted that the current financial year had started well with last year’s volume growth momentum continuing into the new financial year and the ongoing recovery of the paper price rises progressing as expected.

Analysts on blue-chip group

The nine analysts offering 12-month price targets for DS Smith for the Financial Times have a median target of 570.00p on the shares, with a high estimate of 660.00p and a low estimate of 500.00p. As of June 15, the consensus forecast amongst 11 polled investment analysts covering the blue-chip packaging group has it that the company will outperform the market. 

As of 10:42 BST, Monday, 18 June, DS Smith plc share price is 564.40p.

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