Smith (DS) declares an interim dividend of 5.4p per share

DividendMax Ltd.

Smith (DS) declares an interim dividend of 5.4p per share

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

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