DS Smith PLC

SMDS

Equity

ISIN GB0008220112 / Valor 403808

LSE London Stock Exchange, SETS (2024-12-23)

GBP 5.38%

DS Smith PLC
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About company

DS Smith PLC is a prominent global company specializing in the provision of sustainable packaging solutions, paper products, and recycling services. With a history spanning over 80 years, the company has significantly expanded its operations and expertise. DS Smith stands out in the market for its comprehensive approach to packaging, focusing on the entire supply cycle to support major brands worldwide. The company prides itself on its strategic thinking and the ability to offer products that meet the comprehensive needs of its customers, including economic, social, and environmental considerations. DS Smith's ambition is to lead in the sustainable packaging sector, emphasizing the importance of understanding customer needs and delivering integrated solutions. These solutions encompass the entire process from design and production to supply and recycling, aiming to simplify complex supply chains for their clients.

Summarized from source with an LLMView SourceSector: Industrials

Operating Profit

DS Smith PLC reported an adjusted operating profit of £701 million for the full year ending 30 April 2024. This figure is in line with management expectations but shows a decrease from the previous year's £861 million, reflecting the challenging economic environment characterized by weak consumer demand and high inflation.

Box Volumes

The company experienced a decline in like-for-like box volumes by 2% over the year. However, there was a positive shift in the fourth quarter of FY2023/24, with a 2% growth in like-for-like box volumes compared to the same quarter in the previous year, indicating improving momentum.

Cash Flow and Debt

DS Smith PLC's free cash flow was lower due to ongoing capital expenditure and a working capital outflow, primarily influenced by commodity prices. This has resulted in a net debt to EBITDA ratio of 2.1x, compared to 1.3x in the previous year, although underlying working capital metrics have remained consistent.

Capital Expenditure

The company continues to invest in capital and operational expenditure programs aimed at supporting customers and enhancing productivity and environmental efficiency. These initiatives are reported to be on track, demonstrating DS Smith PLC's commitment to long-term strategic goals.

Sustainability Achievements

DS Smith PLC has made significant progress in sustainability, having replaced over 1 billion units of plastic with fiber-based alternatives since May 2020, achieving this milestone 16 months ahead of schedule. Additionally, the company reported a 5% reduction in greenhouse gas emissions for the year, contributing to a total reduction of 19% since 2019.

Summarized from source with an LLMView Source

Key figures

72.6%1Y

40.3%3Y

37.1%5Y

Performance

33.9%1Y

32.6%3Y

33.7%5Y

Volatility