..A leading supplier of recycled packaging in Europe

With a turnover in 2011/12 of £2.0 billion and employing more than 20,000 people, DS Smith Plc is an international supplier of recycled packaging for consumer goods.

On 30 June 2012 DS Smith acquired SCA Packaging. On a combined basis, the group is now the second largest manufacturer of corrugated products in Europe. We are also a leading worldwide supplier of bag-in-box packaging and a leading European supplier of plastic returnable transit packaging. The combined Group now has revenues of approximately £4 billion (based on a combination of historically reported figures and a 12 month contribution from both businesses).

DS Smith is a FTSE 250 company listed on the London Stock Exchange and headquartered in Maidenhead.

http://www.dssmith.com/

21 May Berenberg 350.00 Hold

Proposed acquisition
RNS
RNS Number : 1841R
Smith (DS) PLC
25 June 2015

25 June 2015



DS Smith Plc

Proposed acquisition of Grupo Lantero's corrugated business



DS Smith Plc ("DS Smith"), the leading provider of recycled corrugated packaging in Europe, is pleased to announce today that we have reached an agreement to acquire the corrugated activities of Grupo Lantero, including several operations in which DS Smith currently has a minority holding. The business is a well-invested Iberian corrugated producer with a strong focus in the FMCG sector, operating seven sites across Spain. This acquisition significantly strengthens our operations in Spain, an important and growing market for corrugated packaging, taking our market share to approximately 10%. It also builds on our recent acquisition of Andopack in calendar Q4 2014, where we have seen a very positive customer reaction to our product and service offering. The acquisition is subject to competition clearance, which we expect during calendar Q3 2015 with completion shortly thereafter.



The total consideration, including the assumption of debt, is expected to be circa €190m, subject to closing adjustments, representing a post synergy multiple of between 5 and 6x EBITDA. The transaction is being financed from existing cash resources and is expected to deliver a return on invested capital above our cost of capital in the second year of ownership.



Miles Roberts, Chief Executive of DS Smith said:

"We are delighted to announce the acquisition of the corrugated activities of Grupo Lantero. It is a high quality business that we have known and partnered with for a number of years and significantly increases our offering to Pan-European customers in this large and growing market. It is a further important step in our strategy to leverage our scale and strengthen our geographic footprint and we look forward to working with Grupo Lantero stakeholders and contributing to the overall growth of DS Smith."



Enric Holzbacher, Chief Executive of Grupo Lantero added:

"We are very pleased to hand over our corrugated packaging business to our partner DS Smith. We are convinced that DS Smith has a strong alignment with our FMCG sector and will further develop our well established customer relationships. Grupo Lantero has decided to strategically focus its activities on its multinational rigid and flexible plastic divisions: Coexpan and Emsur."

Final results

Highlights

· Strong growth in profits, returns and dividends, despite FX headwinds

· Organic corrugated box volume growth of +3.1%

o Acceleration in H2

o Market share gains

· Strengthened the quality of the business portfolio and continued value creation from acquisitions

o Four acquisitions announced in the year, including Andopack in Spain and Duropack in south eastern Europe

o Announcing today the proposed acquisition of Grupo Lantero's corrugated business for €190 million, substantially expanding our position in Iberia

· Continued delivery against all our medium-term targets

o Significant improvement in return on sales and ROACE

o Strong cashflow and working capital performance

o Net debt reduced to £651 million, 1.49x EBITDA

25 Jun Investec 430.00 Buy
25 Jun JP Morgan... 420.00 Overweight

Questor-share-tip-Profits-jump-20pc-higher-at-DS-Smith.

26 Jun Barclays... 360.00 Overweight
26 Jun Jefferies... 435.00 Buy
25 Jun Investec 430.00 Buy
25 Jun JP Morgan... 420.00 Overweight

Lantero's completion announcement
RNS
RNS Number : 7854U
Smith (DS) PLC
03 August 2015



3 August 2015

DS Smith Plc

Completion of acquisition of Grupo Lantero's corrugated business



DS Smith Plc ("DS Smith"), the leading provider of recycled corrugated packaging in Europe, is pleased to announce the completion of the acquisition of the corrugated activities of Grupo Lantero ("the acquisition") on Friday 31 July, for approximately €190m (c.£135m), following receipt of competition authority clearance.

The business is a well-invested Iberian corrugated producer with a strong focus in the FMCG sector, operating seven sites across Spain. This acquisition significantly strengthens our operations in Spain, an important and growing market for corrugated packaging, taking our market share to approximately 10%. It also builds on our recent acquisition of Andopack in calendar Q4 2014, where we have seen a very positive customer reaction to our product and service offering.



Miles Roberts, Chief Executive of DS Smith said:

"We are delighted to announce the completion of the acquisition of the corrugated activities of Grupo Lantero. It is a high quality business that we have known and partnered with for a number of years and significantly increases our offering to Pan-European customers in this large and growing market. It is a further important step in our strategy to leverage our scale and strengthen our geographic footprint and we look forward to working with Grupo Lantero stakeholders and contributing to the overall growth of DS Smith."



Enric Holzbacher, Chief Executive of Grupo Lantero added:

"We are very pleased to complete the handover of our corrugated packaging business to our partner DS Smith. We are convinced that DS Smith has a strong alignment within the FMCG sector and will further develop our well established customer relationships. Grupo Lantero has decided to strategically focus its activities on its multinational rigid and flexible plastic divisions: Coexpan and Emsur."

Shares - Davy analyst Barry Nixon says positive containerboard and corrugated pricing momentum should result in further upgrades as the year progresses.

AGM Statement
RNS
RNS Number : 3454Y
Smith (DS) PLC
08 September 2015

8 September 2015

DS Smith Plc - AGM trading statement

DS Smith Plc, the leading supplier of recycled packaging for consumer goods, today issues a trading update in respect of the period since 1 May 2015. DS Smith will hold its Annual General Meeting at 12 noon today.



Trading update

The business has made good progress since the start of the year and performance has been in line with our expectations. Volume growth remains good and reflects the continued customer support for our unique products and service proposition on a pan-European basis.



Our return on sales and return on average capital employed have both shown further improvement versus the comparable prior year period, reflecting the ongoing benefits from our scale which gives us the opportunity to gain share and lead the market in quality and innovation while remaining competitive on price.



Strengthening our business

We continue to actively manage our asset portfolio to enhance the quality of our business and our geographic footprint. On 31 May 2015, we completed the acquisition of Duropack, a recycled corrugated packaging business with market-leading positions across south eastern Europe, for €305 million. We are very pleased with the reaction from employees and from customers, with a limited impact on volumes from customer overlap. The integration work to date has progressed well and we now expect cost synergies of €15 million per annum and cash synergies of €18 million to be delivered within three years of ownership, compared to the original estimates of €12 million and €13 million respectively.



On 31 July 2015 we completed the acquisition of the corrugated activities of Grupo Lantero for approximately €190 million. The business is a well-invested Iberian corrugated producer with a strong focus in the FMCG sector and the acquisition significantly strengthens our operations in Spain, an important and growing market for corrugated packaging, increasing our market share to approximately 10%. Integration is progressing well and we are pleased with the initial response.



On 18 May 2015, the Group completed the sale of StePac, a specialist modified atmosphere packaging business based in Israel, for $31 million.



On 26 August 2015, we announced to employees the proposed closure of Wansbrough Mill and the commencement of employee representative consultation.



Outlook

Our outlook remains positive as volumes and financial returns continue to grow, despite ongoing challenging market conditions. The Board expects continued performance in line with our medium term financial targets and views the remainder of the year with confidence.

Miles Roberts, Group Chief Executive, said:

"We are pleased with our start to the year as we continue to grow organically and actively manage our business portfolio. Packaging has ever increasing relevance in a dynamic retail and consumer environment and our progress with customers is evidenced by continued volume growth, together with increased margins and returns, from our compelling offering and enhanced geographic footprint. We have a clear vision of further growing DS Smith both in geographic scale and quality of service and our most recent acquisitions, together with the customer and market opportunities for growth, give us confidence for the future."

8 Sep Investec 450.00 Buy
8 Sep JP Morgan... 440.00 Overweight

16 Sep Goldman Sachs 430.00 Neutral

01 Oct 2015 Smith (DS) PLC (7.7 P) Ex dividend

DS Smith downgraded by Jefferies
StockMarketWire.com
Jefferies has downgraded its recommendation on Europe's second largest corrugated packaging producer DS Smith (LON:SMDS) to hold from buy following a recent period of share price outperformance which has seen the stock close in on its target price.

The shares are up 11 per cent over the past 6 months and are up 19 per cent since the beginning of the year.

The broker also highlighted 4 key issues faced by the business, which include the volume and price outlook, the M&A pipeline, foreign exchange risks and innovation concerns.

Analysts have left their price target unchanged at 435 pence a share, implying around 10 per cent potential upside.



At 3:24pm: (LON:SMDS) Smith DS PLC share price was -12.85p at 370.15p

Acquisition of Greek corrugated packaging business
RNS
RNS Number : 1667C
Smith (DS) PLC
14 October 2015

14 October 2015



DS Smith Plc

Acquisition of Cukurova Group's Greek corrugated packaging business



DS Smith Plc ("DS Smith"), the leading provider of recycled corrugated packaging in Europe, is pleased to announce the acquisition of the Greek corrugated packaging business of Cukurova Group.



The business is the clear market leader in Greece with a turnover of approximately Euro80m from 3 production facilities. It has a strong focus in the FMCG sector and excellent customer relationships.



The transaction is fully expected to deliver the stated Group medium term financial targets within 3 years.



Simultaneously, DS Smith has entered into an agreement, subject to regulatory approvals, to sell its minority shareholding in Cukurova Group's Turkish corrugated paper and packaging entities to the Cukurova Group. These entities previously owned the Greek business being acquired.



Miles Roberts, Chief Executive of DS Smith said:

"We are delighted to announce the acquisition of the Greek corrugated packaging activities of the Cukurova Group. It is a high quality and stable business that we have known and partnered with for a number of years. It further strengthens and is very complementary to our recently enlarged presence in the growing region of South Eastern Europe.



It is a further important step in our strategy to expand our geographic footprint and to support our customers. We look forward to working with our new colleagues and delivering sustainable and profitable growth in the region."

Half Year pre close statement
RNS
RNS Number : 4840D
Smith (DS) PLC
27 October 2015

27 October 2015



DS Smith Plc - pre-close trading statement

for the half year ending 31 October 2015



DS Smith Plc, the leading supplier of recycled packaging for consumer goods, today issues a pre-close trading statement for the half year ending 31 October 2015.



Group performance remains in line with our expectations, and the business and market trends, as detailed in our trading update on 8 September 2015, have continued. Volume growth remains good while margins, ROACE and EPS continue to show strong growth.



We continue to actively manage our asset portfolio to enhance the quality of our business and our geographic footprint. We have been very active in the half year period completing the acquisitions of Duropack, Lantero and most recently, the acquisition of the market leading corrugated business in Greece. At the same time, we agreed to sell our stake in the Turkish operations of Cukurova Group and we have announced a proposal to reduce our paper capacity via the closure of our Wansbrough paper mill.



Performance of the acquired businesses to date has been better than originally anticipated with good customer reception to our entry into new markets.


Miles Roberts, Group Chief Executive, said:

"We are very pleased with the growth in margins, returns and earnings delivered in the year so far. We have achieved this by a continued focus on delivering for our customers by developing our geographic coverage and the quality of our service offering and customer relationships.



Our outlook remains positive as volumes and financial returns continue to grow, despite no change in market conditions. The Board expects continued performance in line with our medium term financial targets, views the remainder of the year with confidence and remains excited about the opportunities for the Group."



Forthcoming Dates

Results for the half year to 31 October 2015
3 December 2015

27 Oct Canaccord... 430.00 Hold

28 Oct Davy Research N/A Underperform
28 Oct JP Morgan... 440.00 Overweight
27 Oct Canaccord... 430.00 Hold

Half year results

Market Buzz



Fri, 04 December 2015


Friday newspaper share tips: DS Smith a share to keep



Smith (DS) Quote more






Price: 396.60

Chg: 2.10

Chg %: 0.53%

Date: 16:35



FTSE 250 Quote


Price: 17,366.94 Chg: -24.93 Chg %: -0.14% Date: 17:14

(ShareCast News) - DS Smith is being unpacked by the papers in Friday's share tips.
The FTSE 250 packaging group posted a drop in first half pre-tax profit and revenue as the packaging company took a hit from restructuring costs.

For the six months to the end of October, pre-tax profit fell 26% to £91m as the group booked £48m of exceptional costs, namely related to the closure of its Wansborough paper mill and other restructuring activity.

Meanwhile, revenue slipped 1% from the first half of last year to £1.95bn. At constant currency, however, revenue was up 6%.

The Telegraph's Questor noted that while the business of cardboard boxes may to some be a bit boring, it has proven reliable enough to support growth and expand through acquisitions.

It said that the company still has plenty of scope to carry on growing, with a market share of around 16% in Europe.

Questor also highlighted that while the acquisitions have driven debt levels up, investors should not worry as the company has a habit of reducing debt levels quickly as it generates cash.

It said the shares have been on a great run over the year and as the company is growing earnings, the dividend should rise by quite a bit and advised to 'hold for the income'.

The Times' Tempus was a bit more optimistic and rated the shares a 'buy' on Friday.

It said that when chief executive Miles Roberts arrived at the company, he promised he would make it the leader in recycled packaging for consumer goods - a promise he's kept through acquisition.

Tempus also said that the company has worked closely with customers to develop packaging they need to promote greater efficiencies.

However it pointed out the company's weakness to exchange rates, specifically the fall in the euro against the pound, as well as the company's exceptional restructuring costs.

It said yesterday's 21.5p fall in the share price was hard to fathom and advised the fall helps it look like an attractive buying opportunity, observing that the company is still performing well and is building in future growth.

DS Smith (LON:SMDS), up 7.7%. Charles Stanley has initiated coverage on the packaging firm with a 'buy' rating.