DS Smith’s FY23/24 revenue slides down by 17%

UK – DS Smith, a global packaging company, reported a total revenue of £6.82 billion (US$8.65bn) for the financial year 2023/24 (FY23/24), marking a 17% decrease from £8.22 billion in FY22/23.

This revenue drop was significantly impacted by a £129 million decrease in box volumes and a substantial £1.17 billion (US$1.48bn) fall in selling prices.

During the year, packaging prices declined by £647 million (US$819.47m), about 10%, with the remaining difference attributed to decreased sales in external paper, recyclate, and energy.

For the fiscal year ending 30 April 2024, statutory profit before tax stood at £503 million (US$637.08m), a 24% reduction from £661 million (US$837.20m) the previous year.

Operating profit also decreased by 18% to £604 million (US$765.01m), compared to £733 million (US$928.40m) in the prior year, while adjusted operating profit fell 19% to £701 million (US$887.87m) from £861 million (US$1.09bn) in FY22/23.

Basic earnings per share from continuing operations declined by 20% to 28.0 pence on a constant currency basis.

DS Smith ended the fiscal year with net debt of £2.23 billion (US$2.82bn), up from £1.63 billion (US$2.06bn) in FY22/23.

Despite these financial challenges, DS Smith has made significant strides in sustainability. Since May 2020, the company has replaced more than one billion units of plastic with fibre-based alternatives, surpassing its’ 2030 Now and Next’ goals well ahead of schedule.

The company also achieved a 5% reduction in greenhouse gas emissions over the year.

DS Smith Chief Executive Miles Roberts said: “We are pleased to have delivered a robust performance, despite the challenging environment, driven by our focus on customers, quality, service, and innovation together with the benefit from our self-help productivity initiatives.

“I am also very proud of the continued excellent progress in helping our customers’ sustainability challenges and to have achieved our target of one billion units of plastic replaced with fibre-based alternatives 16 months ahead of schedule.”

In related industry news, Mondi recently invested €125 million (US$134 million) in its containerboard mill in Kuopio, Finland, increasing production capacity by 55,000 metric tons annually.

The investment includes upgrades to the wood yard, fiber line, evaporation plant, and paper machine producing ProVantage Powerflute, a high-performance fluting used in fresh fruit and vegetable trays and boxes.

Andrew King, CEO at Mondi Group, stated: “We are delighted to celebrate the completion of this significant investment and the opportunity it gives us to continue providing high-quality, sustainable products to our customers.

“It also demonstrates our commitment to supporting economic growth in the region and securing the long-term viability of the Kuopio mill.”

For all the latest packaging and printing industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on LinkedIn and subscribe to our YouTube channel.