Packaging giant DS Smith reported a dip in both profit and revenue as it grappled with a decline in box volumes and lower selling prices.
Adjusted operating profit slipped 19 per cent to £701m in the 12 months to April, in line with expectations, amid weak overall market demand. Revenue also fell around 17 per cent to £6.8bn.
DS Smith said medium-term targets for box volume growth had been “significantly impacted” by inflation, in addition to lower production volumes.
Miles Roberts, Group Chief Executive, 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.
“The positive trends in packaging volumes from the second half of last year have continued into the current financial year and we remain focused on pricing, operational efficiency and tight cost control.”
The well-liked Roberts has announced he will be gradually stepping away from the business over the next year or so.
It comes after DS Smith was snapped up by Memphis-based International Paper in a £5.8bn deal in April that followed a protracted bidding war with the company’s rival Mondi.
International Paper has said it will look for a secondary listing on the London Stock Exchange and retain a base in the City as part of the deal.
In a statement to markets, Roberts said the takeover was an “attractive opportunity to create a truly international sustainable packaging solutions leader that is well positioned in attractive and growing markets across Europe and North America.”
“We are working collaboratively with International Paper to satisfy the offer conditions and bring about the successful completion of the transaction.”
Shares in DS Smith are up over 14 per cent in the year to date.