DS Smith Corrugated Box Volumes Surged in 2018

SEATTLE (Scrap Monster): DS Smith reported robust performance in 2018 across geography. The company achieved substantial growth, along with significant optimization of its paper operations during the year.

The UK corrugated packaging business performed well, despite political and economic uncertainties. The overall volumes were driven by both FMCG and e-commerce. The region reported 11% surge in adjusted operating profit and a 70 basis points increase in margin during the year.

The Western Europe division recorded modest volume growth. The decline in volume growth in France was partially offset by good growth in Iberia and the Benelux region, primarily on account of acquisition of Europac. The return on sales increased significantly to 8%. The DCH and Northern region too reported modest growth in volumes. The contraction in Germany and Switzerland were partially offset by good volume growth in Northern Europe. The adjusted operating profit jumped by 12%, whereas revenues recorded a decline of 2%.

Italy contributed to volume growth in Central Europe and Italy region. The inclusion of Ecopack and EcoPaper resulted in a healthy revenue growth of 9%. Meantime, the adjusted full-year operating profit skyrocketed 29% in 2018.

The North America Packaging and Paper division reported strong growth in corrugated box volumes. The contribution from the acquired businesses of Interstate Resources and Corrugated Container Corporation resulted in a revenue growth of 59%.