DS Smith’s Profits Slumped in Half Year 2024/25

SEATTLE (Scrap Monster): DS Smith reported notable decline in profits and revenue for the first half of 2024/25 ending October 31, 2024.

In comparison to H1 2023/24, the UK's top manufacturer of paperboard packaging with recycled content reported a 4% drop in revenue and an 89% drop in profits during the first half of the fiscal year. Reduced packing costs were the primary cause of the adjusted operating profit's drop from £365 million to £221 million. Meanwhile, the business stated that the decline in earnings is consistent with its projections, particularly given the persistently difficult market environment.

In the first six months, DS Smith saw that its input costs increased, particularly for fiber and paper. Nevertheless, cost-cutting and productivity-boosting measures more than made up for these expenses. Ahead of its merger with IP, which is anticipated to be completed in Q1 of next year, the company also kept up its large capital and operational investments to promote long-term productivity and environmental efficiency.

In order to recoup increased input costs, DS Smith anticipates a minor increase in packing volumes and a rise in sequential prices, according to Miles Roberts, Group CEO. He went on to say that the company's business integration with IP will open up exciting potential for shareholders, employees, and customers.

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