Dec 5, 2007

DS Smith to keep increasing box prices following 'strong' results


DS Smith Group, the packaging and paper manufacturer, is to continue raising box prices to recover increasing input costs, after recording a "strong set of results" for the first half of the financial year.

DS Smith today (5 December) reported a 43% increase in pre-tax profit to £56.1m in the six months to 31 October, compared with the same period in 2006. Total revenues increased by 8.5% to £942m year-on-year.

"The higher profits reflect the management's actions to lower costs, improve the sales mix and recover the higher input costs through better pricing," said chairman Peter Johnson.

DS Smith said box price increases were likely to carry on into the first half of the next financial year.

The better pricing environment for corrugated materials and boxes had been underpinned by the balanced supply and demand for recycled corrugated material in Europe, said the company.

Additional capacity is not expected before 2009, but this should be absorbed by market growth.

Within the UK packaging market, demand for retail-ready packaging continued to grow strongly during this period.
Source: packagingnews

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