UK’s DS Smith raises dividend, upbeat on annual performance

(Reuters) – DS Smith on Thursday raised its interim dividend by 25% and forecast a stronger-than-expected annual performance, after the British cardboard maker posted an increase in its first-half profit due to higher box prices and tight cost controls.

The packaging giant, which supplies packaging to clients including the likes of Amazon and Unilever, reported a 51% jump in adjusted operating profit from continuing operations at 418 million pounds ($509.8 million) for the six months ended Oct. 31.

The profit surge comes despite box volumes declining 3% in the first-half, hit by a weaker-than-expected industrial sector and economic challenges — particularly in the UK and Germany, the company said.

“The macro-economic outlook for the rest of the financial year remains challenging,” Chief Executive Officer Miles Roberts said in a statement.

The company, which provides packaging, paper and recycling services, had expected half-year adjusted operating profit of at least 400 million pounds. It had earned 276 million pounds a year earlier.

($1 = 0.8199 pounds)

(Reporting by Amna Karimi and Anchal Rana in Bengaluru; editing by Uttaresh.V)