Smith (DS) (SMDS)

Sector:

Manufacturing

Index:

FTSE 100

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489.00p
   
  • Change Today:
    -5.90p
  • 52 Week High: 538.91p
  • 52 Week Low: 427.82p
  • Currency: UK Pounds
  • Shares Issued: 1,074.58m
  • Volume: 595,424
  • Market Cap: £5,255m
  • RiskGrade: 125

DS Smith sees strong outlook for more volume growth

By Oliver Haill

Date: Thursday 07 Dec 2017

LONDON (ShareCast) - (ShareCast News) - Packaging and paper group DS Smith increased sales strongly in the first half of the year but profits grew more slowly due to higher paper prices.
Management has been able to pass on most of the higher costs to customers and has also benefitted thanks to the very good organic volume growth growth of 5.2% in corrugated boxes, well ahead of the target of GDP plus 1%.

Growth was attributed to market share gains, with strong volumes again from pan-European customers, particularly due to the ever-growing need for parcel packing from e-commerce companies, which has been boosted by overall European economic growth.

Revenues in the six months to 31 October climbed 19% to £2.8m, or 14% at constant currency rates, with adjusted operating profit rising 11% to £251m or 6% at constant currencies. Adjusted earnings per share were 6% higher at 17.4%, affected by an equity issue in June connected with the acquisition of Interstate Resources in the US.

Statutory EPS of 10.6p was down 14% due higher amortisation and adjusting items, as well as the expanded number of shares in issue.

Interstate, Smith's first fibre-based US business, has delivered an "excellent performance" with integration into the group ahead of expectations. Management have increased their estimate of annualised cost synergies achievable from the acquisition, to $30m by the end of the third full year up from $25m, based principally on greater opportunities to drive operational efficiencies and global supply chain benefits.

Group chief executive Miles Roberts was pleased by the reaction to the acquisition from both employees and customers and said the agreed €208m acquisition of Romania's EcoPack and EcoPaper is on track to complete in January.

He said the outlook remained positive as the second half began "with good momentum".

"Our packaging proposition that delivers real value to our customers is reflected in our volume growth and, while input cost pressures remain, we continue to recover those costs as planned," he said. "We continue to see exciting opportunities for growth, both in Europe and in North America, and, accordingly, the Board remains confident about the outlook for DS Smith."

DS Smith will cap off its year with promotion to the FTSE 100 index on 15 December, it was confirmed last week.

SMDS shares were up almost 3% to 555p not long after trading opened on Thursday.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Smith (DS) Market Data

Currency UK Pounds
Share Price 489.00p
Change Today -5.90p
% Change -1.19 %
52 Week High 538.91p
52 Week Low 427.82p
Volume 595,424
Shares Issued 1,074.58m
Market Cap £5,255m
RiskGrade 125

Smith (DS) Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
49.48% below the market average49.48% below the market average49.48% below the market average49.48% below the market average49.48% below the market average
73.33% below the sector average73.33% below the sector average73.33% below the sector average73.33% below the sector average73.33% below the sector average
Price Trend
55.02% above the market average55.02% above the market average55.02% above the market average55.02% above the market average55.02% above the market average
46.67% above the sector average46.67% above the sector average46.67% above the sector average46.67% above the sector average46.67% above the sector average
Income
27.77% above the market average27.77% above the market average27.77% above the market average27.77% above the market average27.77% above the market average
16.67% below the sector average16.67% below the sector average16.67% below the sector average16.67% below the sector average16.67% below the sector average
Growth
37.78% above the market average37.78% above the market average37.78% above the market average37.78% above the market average37.78% above the market average
73.33% above the sector average73.33% above the sector average73.33% above the sector average73.33% above the sector average73.33% above the sector average

What The Brokers Say

Strong Buy 6
Buy 1
Neutral 3
Sell 0
Strong Sell 0
Total 10
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Smith (DS) Dividends

  Latest Previous
  Final Interim
Ex-Div 04-Oct-18 05-Apr-18
Paid 01-Nov-18 01-May-18
Amount 9.80p 4.90p

Trades for 19-Jul-2018

Time Volume / Share Price
08:46 228 @ 489.00p
08:46 115 @ 489.00p
08:46 750 @ 489.20p
08:45 750 @ 489.50p
08:45 983 @ 489.80p

Smith (DS) Key Personnel

Chair Gareth Davis
CEO Miles Roberts

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