DS SMITH, the supplier of packaging and office products, has more than tripled its pre-tax profits on the back of a strong recovery in demand among its industrial and consumer goods clients.
The firm notched up a 227 per cent rise in profits to £55m in the year to 30 April on sales of £2.1bn. Management decided to crank up the dividend 4.5 per cent to 4.6p.
DS Smith, which counts Procter & Gamble, Nestlé and Cadbury’s among its customers, suffered in the first half of its financial year due to the ongoing lull in economic activity. But chief executive Miles Roberts said the gradual pick-up in demand in the January-to-March period had continued into the summer, boosting sales.
Evolution Securities kept its “buy” recommendation on the shares. DS Smith’s stock rose 1.3 per cent to 121.5p on the news.