DS Smith reports year-on-year revenue decline

London-based paper and packaging producer DS Smith plc has reported a 17 percent revenue decline and a 23 percent drop in earnings in its recently completed fiscal year.

The company, which is in the process of being acquired by International Paper (IP), reports $579 million in net income in its 2023-2024 fiscal year, which ran from May 1, 2023, to April 30, 2024. That figure is down 23.1 percent from the nearly $753 million DS Smith earned in its prior fiscal year.

The company’s management refers to “a weak consumer demand environment and high inflation” as factors in its reduced revenue and profits, including what it calls a 2 percent decline in “like-for-like” box shipment volumes.

In announcing the results, DS Smith adds that it continues to endorse an all-share offer from IP to combine the businesses and create what it says will be a truly international sustainable packaging solutions leader.

“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," DS Smith Chief Executive Miles Roberts says.

He adds that demand for DS Smith products has been rising this year compared with much of last year.

“The positive trends in packaging volumes from the second half of last year have continued into the current financial year,” Roberts says. “The increasing demand is resulting in higher paper and other input costs, including old corrugated containers (OCC). We anticipate this will be reflected in packaging price rises, with the benefits expected to be weighted to the second half of our current financial year and provide further momentum into fiscal year 2026.”

Roberts also points to the company’s sustainability credentials, adding, “I am also very proud of the continued excellent progress in helping our customers’ sustainability challenges and to have achieved our target of 1 billion units of plastic replaced with fiber-based alternatives 16 months ahead of schedule.”

Regarding the pending acquisition of DS Smith by IP, Roberts says, “The combination with International Paper is 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 IP to satisfy the offer conditions and bring about the successful completion of the transaction.”