DS Smith’s refocus on its recycled packaging businesses has paid off with reported full-year results for 2010/2011 showing a 10% underlying revenue increase.
The group gained 8% growth in the packaging market with a revenue increase of 22% to £917.7m in the UK packaging division.
Chief executive Miles Roberts said: “The strong performance was achieved in the context of significant increases in input costs, which we have been dedicated to recovering. The result is a business now delivering a return on capital above its costs of capital, which is a critical milestone.
“While I am pleased with the progress to date, there is substantially further to go to realise the full potential of the group. Over the coming years, we plan to focus further on business mix – building the recycled packaging business in our target regions and reducing non-core activities.”
Roberts added that the “strong momentum” seen at the beginning of the year is continuing into the current financial year.
It is continuing with its target to deliver £20m of cost savings by 2014.