Smith (DS) increases 2013 full year dividend by 36%

DividendMax Ltd.

Smith (DS) increases 2013 full year dividend by 36%

Financial Highlights

Revenue +86% to £3,669.3m (2011/12: £1,969.4m)

Adjusted operating profit +77% to £250.9m (2011/12: £142.0m)

Profit before tax +51% to £166.2m (2011/12: £110.2m)

Profit after tax from continuing operations £70.3m (2011/12: £8.4m)

EPS +36% to 17.4p (2011/12: 12.8p)

Dividend +36% to 8.0p (2011/12: 5.9p)

Free cash flow +186% to £270.4m (2011/12: £94.5m)

ROACE 12.3% - in line with medium-term target


Delivering on our strategy

DS Smith has made substantial progress over the past year towards its strategic aim to become the leader in recycled packaging for consumer goods.

Operational and strategic highlights 

Successful integration of SCA Packaging

o Cost and cash synergy targets upgraded to €120 million and €150 million respectively

o Achieved a return above the cost of capital in first 10 months, one year earlier than anticipated

Strong performance in packaging despite challenging economic environment with volume in line with medium term financial target of GDP +1 per cent

Enhanced customer offering driving market share gains

Successful international licensing of technology

Building a strong platform for future growth

Miles Roberts, Group Chief Executive, said:

"We are delighted with the results announced today. This has been a transformational year for DS Smith during which we have made substantial operating, financial and strategic progress, following the acquisition and successful integration of SCA Packaging, providing a strong platform for further growth. The on-going commitment and focus from our employees has enabled us not only to deliver the initial synergies we targeted earlier than expected, but also to identify further synergies across the enlarged business.

We continue to deliver on our medium-term financial targets and strong and consistent cash flows have enabled us to significantly reduce our net debt to EBITDA position to below 2.0x, one year earlier than expected. This further demonstrates the resilience and sustainability of our business model. Following another year of substantial earnings growth and underpinning our confidence in the medium-term prospects for the business, we have increased the full-year dividend by 36%.

The current year has started well and in line with our expectations. Continued market share gains, together with the delivery of further synergies underpin our confidence for the future, despite the market backdrop remaining challenging and the expected impact of input cost pressures. Our strengthened customer proposition will be further enhanced by increased investment in capital expenditure, R&D and new business development. Looking ahead we remain excited about the further growth opportunities for the Group."


Companies mentioned