Despite a significant drop in adjusted operating profit to £221 million (-39%), DS Smith achieved its targets for the first half of 2024/2025. The decline in profits was mainly due to the expected fall in packaging prices and the impact of high raw material costs, notably fiber and paper. However, cost-cutting and productivity initiatives have partially offset these pressures.
The company's revenues fell by 4% to £3.37 billion, while pre-tax profits plummeted by 89% to £29 million. Despite these figures, growth in box volumes (+2%) and a renewed focus on quality and customer service underpinned operating performance.
Approval of the merger with International Paper
The planned merger with International Paper, announced in April, has received overwhelming support from shareholders of both companies. Scheduled to be completed in the first quarter of 2025, the deal aims to create a major international player in sustainable packaging solutions.
We are actively preparing to integrate our activities, and the opportunities for our customers, employees and shareholders are immense," Miles Roberts, CEO of DS Smith
