By Catherine Lafferty
Investing.com -- Shares in DS Smith rose 1.1% to their highest in nearly a month on Thursday, as the packaging group announced a dividend increase alongside strong half-year results.
The FTSE 100 company said performance was driven by robust demand in all its markets, allowing higher average selling prices - making it the latest in a long line of companies apparently succeeding in passing on price increases to customers.
The company raised its interim dividend by 20% to 4.8 pence a share. Revenue grew 16% to 3.36 billion pounds ($4.4 billion) for the half year, while operating profit rose 50% on the previous year to 207 million pounds.
Miles Roberts, DS Smith group chief executive, said the company continued to benefit from a dynamic market and had seen strong growth in the US and Southern Europe.
“Our supply chains have remained secure and the significant increases in input costs have been mitigated by effective hedging of energy cost, our long term supplier agreements and raising packaging prices," Roberts said.
The company saw record corrugated box volume sales growth, led by good performances in the Nordics, Benelux and Germany.