DS Smith Well Placed for Packaging Revolution

The Week: Morningstar columnist Rodney Hobson unpacks the latest update from packaging group DS Smith, which is benefiting from move away from plastics

Rodney Hobson 6 December, 2019 | 9:34AM

Stock market chart

The first thing you do with packaging is to tear it off and throw it away, yet there is no doubting the need for it. And in these anti-plastic days we should be celebrating the success of paper-based packaging.

It was a surprise, therefore that packaging group DS Smith (SMDS) saw its shares drop 7% on perfectly satisfactory half year results to October 31. Revenue rose 4% and pre-tax profits 31% as the return on sales improved strongly, while the interim dividend is raised by 4%. The figures followed an excellent performance in the second half of the previous year, so perhaps investors were hoping for better.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Character Group (The) PLC230.00 GBX5.99
Dunelm Group PLC750.50 GBX5.19
Marks & Spencer Group PLC111.25 GBX11.14
Next PLC4,085.00 GBX8.15
Smith (DS) PLC292.00 GBX6.61

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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