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
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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
Character Group (The) PLC550.00 GBP0.00
Dunelm Group PLC1,341.00 GBP0.00
Marks & Spencer Group PLC238.70 GBP0.00Rating
Next PLC7,998.00 GBP0.00
Smith (DS) PLC372.10 GBP0.00

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.