Packaging company DS Smith PLC (LON:SMDS) posted a 21% increase in full-year adjusted pre-tax profit, boosted by acquisitions and recovering paper prices.
The group, which makes recycled paper, corrugated cardboard and plastic packaging, said adjusted pre-tax profit for the year to 30 April 2018 was £473mln, up from £391mln a year ago.
Revenue rose 21% to £5.77bn from £4.78bn last year, driven by an improvement in paper prices, growth from acquisitions and strong demand from European and e-commerce customers.
Earlier this month, DS Smith offered to buy Spanish rival Europac for €1.9bn following recent acquisitions in Europe of EcoPack and EcoPaper as well as in the US with the purchase of Interstate Resources.
READ: DS Smith agrees €1.67bn bid for Europac
DS Smith said the new fiscal year has “started well” with volume growth momentum seen continuing and the ongoing recovery of the paper prices progressing, as expected.
The company recommended a final dividend of 9.8p per share, compared to 10.6p last year.
A strategic review of the plastics division has been initiated with the view of increasing focus on the production of “high quality, cost effective corrugated packaging”, DS Smith added.
Shares in DS Smith fell 0.78% to 559p in early trading.