DS Smith (LON:SMDS) shares are trading down nearly 3 percent, despite recording a rise in both pre-tax profit and sales.
Pre-tax profit rose 8 percent to £292 million in the year to 30 April, with sales over the period up 17 percent to £5.76 billion. The figures were boosted by strong organic box volume growth of 5.2 percent.
The company, who specialises in packaging and consumer goods, said the volume growth momentum seen in 2017/18 was likely to continue unto the new financial year, adding that ongoing recovery of the paper price rises announced earlier this calendar year progressing as expected.
CEO Miles Roberts commented: “DS Smith is reporting a strong set of numbers for the full year, showing that we are continuing to succeed in a very dynamic market.
“We were delighted to announce the proposed acquisition of Europac on 4 June which builds on our recent acquisitions in Europe of EcoPack and EcoPaper and also in the US, where the integration of Interstate Resources is delivering excellent performance, well ahead of expectations.
“We’re seeing good momentum into 2018/19, feel that our model is more relevant than ever for our customers, and view the future with confidence.”
Shares in DS Smith are currently trading down 2.45 percent at 550.00 (1456GMT).
