DS Smith seeks buyer for plastics division

The corrugated packaging giant said that its plastics division “is now being treated as discontinued” and the board concluded that it is an “attractive asset with good growth prospects”. The group is now “exploring opportunities for a potential sale of the division”.

Results for the first half of the year showed a 15% increase in group revenue to £3.2bn while adjusted operating profit was up 27% to £318m.

For continuing operations, excluding plastics, revenue was also up 15% to £3.1bn while profit before tax was up 27% to £162m

The company cited “compelling commercial differentiation and structural drivers” for the improved performance.

Miles Roberts, DS Smith Group chief executive said: “We are very pleased with the progress we have made over the last six months. We have strong momentum in the market, delivering good top line growth and substantially increased profit levels.

“We continue to win market share through our strong FMCG presence and our leadership in both e-commerce and sustainable packaging. DS Smith is extremely well positioned to capitalise on these ongoing growth trends and we are confident about the future prospects for the business.”

In October, DS Smith won the Company of the Year accolade at the UK Packaging Awards.