😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

DS Smith's bid triangle to overshadow numbers

Published 14/06/2024, 09:27
© Reuters DS Smith's bid triangle to overshadow numbers

Proactive Investors - DS Smith’s full-year results should have potentially been its last as a listed paper business following an agreed £5.8 billion bid from US group International Paper.

But an offer for Int’l Paper from Brazilian group Suzano has mixed things up and it might be, that like an earlier offer from Mondi (LON:MNDI), this deal too falls through.

A trading update from DS Smith (LON:SMDS) in March confirmed that trading was in line with expectations, thanks to an uptick in corrugated box volumes in the second half compared to a 4.7% year-on-year first-half drop.

Sales for the year are forecast to be around £7 billion, down 15% with a small improvement to £7.3 billion expected for the current year.

Consensus numbers suggest a headline pre-tax profit of around £600 million down by around 10%, with a modest increase in fiscal 2025.

AJ Bell notes that an operating profit of £700 million would equate to a margin of 10%, at the low end of the company’s 10% to 12% target range, though the wealth platform adds that any comment on the International Paper-Suzano-DS Smith triangle will likely overshadow the numbers.

Read more on Proactive Investors UK


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.