Smith (DS) declares an interim dividend for this half year of 5.4 pence per share (H1 2018/19: 5.2 pence per share). This represents an increase of 4%, demonstrating the confidence of the Board in the outlook for the Group. The dividend will be paid on 1 May 2020 to ordinary shareholders on the register at the close of business on 14 April 2020.
Other financial highlights include:
Record Group profitability and return on sales despite economic headwinds
o Market share gains driven by multinational FMCG and e-commerce customers
o Customers increasingly valuing our sustainable packaging solutions, reflected in good pricing and return on sales up 110 basis points
Europe - good organic profit growth
Europac - excellent progress and strong initial contribution
o Packaging turnaround to profitability
o €70m synergy programme fully on track
Good US domestic performance offset by impact of export paper pricing
o Indiana greenfield box plant now operational
Transforms US capability and customer offering
Consistent with strategy to reduce US long paper exposure
Strong cashflow and balance sheet
o Plastics disposal (net proceeds c. £400m) expected to complete around the calendar year end
o Strong liquidity profile: €600m, seven year bond raised at 0.875%
Future growth prospects continue to benefit from the increased customer focus on sustainability (including plastic replacement) and e-commerce
