Dividend cheer for DS Smith investors

Packaging and office products company DS Smith posted a higher full-year adjusted pre-tax profit as the company increased its share in key markets, and said the strong momentum seen at the end of last year is continuing into the current financial year.

By The Newsroom

Published 24th Jun 2011, 07:00 BST

The producer of recycled packaging also raised its final dividend by 45 per cent to 4.5p, taking the total dividend to 6.5p.

For the year ended April 31, the company, whose customers include Procter & Gamble and Nestle, posted an adjusted pre-tax profit of £108.9m compared with £72.4m a year ago.

Revenue rose 19 per cent to £2.47 bn.

Analysts on average had expected DS Smith to earn £101.5m before taxes, on revenue of £2.46bn. Shares in DS Smith rose 11 per cent following the upbeat results.

“The organic growth drivers were sales price increases, mix changes and volume growth as the group took market share,” Jeremy Withers Green, an analyst with JP Morgan said.

The analyst has an ‘overweight’ rating on the stock.

Nestle