Announcement • Jan 17
DS Smith Launches Tape Back, Unique Packaging Design Solution DS Smith has launched Tape Back, a unique packaging design solution that eliminates the need for single-use plastic tear strips in e-commerce packaging. Tape Back uses one glue strip for two e-commerce shipments, reducing waste and ensuring suppliers can offer seamless and sustainable returns. Tape Back features a convenient return strip that allows consumers to easily reuse the original packaging for returns, minimizing the need for additional materials. Other product benefits include: Seamless Returns – The easy-to-peel return strip requires less packaging and requires no additional materials to return items. Innovative Design – DS Smith designers have created an innovative solution that removes the need for a single-use plastic tear strip entirely. Enhanced Sustainability - With sustainability driving consumer behavior, Tape Back reduces hidden non–recyclable material and avoids mixing components, making it easy to recycle at home. Improved Functionality - Designed to do more with less the innovative solution reduces waste. It also makes it easier for suppliers to process returns and eliminates the risk of stock being damaged when returned. Announcement • Dec 05
DS Smith plc Declares an Interim Dividend for the First Half Ended October 31, 2024, Payable on 29 January 2025 The Board of DS Smith Plc declared an interim dividend of 6.2 pence per share for the first half ended October 31, 2024 . The dividend will be paid on 29 January 2025 to ordinary shareholders on the register at close of business on 13 December 2024. Announcement • Jun 19
DS Smith Plc Announces Retirement of Louise Smalley from the Board, Effective 3 September 2024 DS Smith Plc announced that Louise Smalley will retire from the Board with effect from the conclusion of its Annual General Meeting on 3 September 2024. Announcement • Apr 16
International Paper Company and DS Smith Plc Announce Andrew K. Silvernail to be CEO of the Combined Company International Paper and DS Smith Plc announced that they have reached agreement on the terms of a recommended all-share combination, creating a truly global leader in sustainable packaging solutions. Andrew K. Silvernail will be CEO of the combined company and Miles Roberts will be retained as a consultant to assist with integration matters. As part of the Combination, up to two non-executive directors of DS Smith will be invited to join the Board of the combined company upon close of the Combination. Announcement • Mar 20
DS Smith Launches Shop.able Carriers Recyclable Box Solution for Transporting Groceries Shop.able Carriers, a line of recyclable, reusable boxes for supermarkets that replaces plastic shopping bags, are now available to deliver consumers a more sustainable and convenient packaging solution for everyday grocery shopping. The durable, stackable boxes – designed and manufactured by sustainable fiber-based packaging leader DS Smith – feature the company’s patented, food-safe, and water-resistant Greencoat® coating technology, giving consumers an affordable alternative to hard-to-recycle plastic bags. Shop.able Carriers are reusable, moisture-resistant, modular, and 100% recyclable made from renewable resources. Announcement • Mar 09
Mondi plc (LSE:MNDI) made an offer to acquire DS Smith Plc (LSE:SMDS) for £5.1 billion Mondi plc (LSE:MNDI) made an offer to acquire DS Smith Plc (LSE:SMDS) for £5.1 billion on March 7, 2023. Linklaters LLP is acting as legal adviser to Mondi. Slaughter and May is acting as legal adviser to DS Smith. Announcement • Mar 05
DS Smith Unveils Drypack Solution in U.S. Market to Help Seafood Processing Processors Phase Out Plastic Containers DS Smith is launching its DryPack seafood box in North America. A sustainable replacement for non-recyclable expanded polystyrene (EPS) foam boxes, DS Smith DryPack is a no-leak, 100% water-resistant, fully recyclable box that, when packed with ice, can keep fresh fish below 40 degrees Fahrenheit for over 40 hours in cold chain operations. DryPack is the only containerboard seafood box approved for air freight by the International Air Transport Association, giving seafood processors the ability to safely ship fresh fish for short and long distances. The boxes ship flat to seafood processors - requiring 81% less space than foam plastic EPS boxes - and are easy and quick to assemble manually or with the use of automation equipment. DS Smith NAPP is now manufacturing DryPack boxes at its U.S. specialty packaging plants using its patented and proven Greencoat®? technology - a food-safe, moisture-resistant, recyclable coated box solution that has USDA, CFIA, FDA and FBA certifications. In addition to seafood packaging, the technology is used in the fresh poultry and produce industries to replace non-recyclable, wax-coated boxes. Norwegian DS Smith customer Kvaroy Arctic - a family-owned salmon producer located on an island inside the Arctic Circle - depends on DryPack's recyclability and reliability as a water-resistant and versatile packaging solution. This patented, sustainable seafood box - a past design winner of the World Packaging Association's WorldStar Award - is making its North American debut at the Seafood Processing North America tradeshow in Boston, March 10-12, where DS Smith is exhibiting in booth #1671. With DryPack, DS Smith is furthering its ambition to accelerate plastic replacement in the packaging space. Driven by its Now and Next sustainability strategy and working in partnership with customers, DS Smith has replaced 762 million problem plastics with fiber-based alternatives since 2020, and is on track to beat its goal of replacing 1 billion plastics by 2025. The company is committed to supporting a transition to the Circular Economy, eliminating waste and pollution, and keeping materials in use for longer. DS Smith creates 100% recyclable or reusable packaging, helping customers design out hard to recycle plastics. DS Smith has also created more than 30,000 circular-ready projects through its Circular Design Metrics, a design analysis tool that helps customers drive sustainability performance. New Risk • Feb 29
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Earnings are forecast to decline by an average of 0.6% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. New Risk • Feb 13
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Earnings are forecast to decline by an average of 0.6% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to UK£3.15, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 13x in the Packaging industry in Europe. Total loss to shareholders of 9.4% over the past three years. Announcement • Feb 09
DS Smith Receives Highly Preliminary Expression of Interest from Mondi over a Possible Offer DS Smith Plc (LSE:SMDS) shares jumped after the company said it has received a highly preliminary expression of interest from larger peer Mondi plc (LSE:MNDI) over a possible offer, but that no proposal has been received at this stage. DS Smith shares at 1300 GMT were up 27.80 pence at 308.90 pence, leading the FTSE 100 index risers. However, they are currently down 12% over the past 12 months. Mondi shares are down 54.50 pence, or 3.95%, at 1,326.50 pence and are down 11% over the past 12 months. The London-listed packaging company said February 8, 2024 that there is no certainty a deal will be struck, nor the terms of any proposal. Any deal would create a company worth GBP 10.365 billion ($13.09 billion) based on each company's current market values. Mondi has until March 7 to either make a formal offer or walk away under U.K. Takeover Panel rules. Mondi later acknowledged that it is in the early stages of considering an all-share merger with DS Smith saying that it believes a deal would "create an industry leader in European paper-based sustainable packaging solutions." It said the company routinely considers options within its capital allocation framework to boost growth in the packaging sectors in which it operates. Mondi also said that there's no certainty any offer will be made to buy DS Smith. New Risk • Jan 31
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.1% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Earnings are forecast to decline by an average of 0.1% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. New Risk • Jan 09
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.2% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Earnings are forecast to decline by an average of 0.2% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. New Risk • Dec 18
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.1% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Earnings are forecast to decline by an average of 0.1% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Dec 08
First half 2024 earnings released: EPS: UK£0.15 (vs UK£0.17 in 1H 2023) First half 2024 results: EPS: UK£0.15 (down from UK£0.17 in 1H 2023). Revenue: UK£3.51b (down 18% from 1H 2023). Net income: UK£204.0m (down 12% from 1H 2023). Profit margin: 5.8% (up from 5.4% in 1H 2023). The increase in margin was driven by lower expenses. Revenue is forecast to stay flat during the next 3 years compared to a 1.9% growth forecast for the Packaging industry in Europe. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Oct 01
DS Smith Plc Appoints Tessa Bamford as Non-Executive Director, Effective 1 January 2024 DS Smith Plc announced the appointment of Tessa Bamford to the company's board as a non-executive director, with effect from 1 January 2024. She will also join the Audit, Nomination and Remuneration Committees of the Board. Tessa will be joining following her retirement from Spencer Stuart, a global leadership search and advisory firm, where she led the UK Board and CEO practice, working with clients in the UK and internationally. Tessa previously held non-executive director roles at Ferguson plc for 10 years and at Barratt Developments plc for 9 years. Prior to joining Spencer Stuart, Tessa was a founding director of Cantos Communications, an online corporate communications company where she also managed many of its largest client accounts. Her earlier career was as an investment banker for 18 years, which started at BZW, then Schroders, latterly as a managing director in which she worked in both the UK and US advising companies on equity capital markets and M&A. Upcoming Dividend • Aug 31
Upcoming dividend of UK£0.12 per share at 5.8% yield Eligible shareholders must have bought the stock before 07 September 2023. Payment date: 03 October 2023. Payout ratio is a comfortable 50% and the cash payout ratio is 90%. Trailing yield: 5.8%. Lower than top quartile of British dividend payers (6.3%). Higher than average of industry peers (3.5%). Announcement • Aug 03
DS Smith Plc (LSE:SMDS) agreed to acquire Društvo Za Proizvodnju Štampane I Kaširane Kartonske Ambalaže Bosis Doo Valjevo. DS Smith Plc (LSE:SMDS) agreed to acquire Društvo Za Proizvodnju Štampane I Kaširane Kartonske Ambalaže Bosis Doo Valjevo on August 1, 2023. Following completion of the acquisition of Bosis doo, DS Smith’s total packaging operations in Eastern Europe will comprise 29 box plants and additional facilities, employing more than 7,000 people in the region. The transaction is subject to customary closing conditions. The transaction is expected to complete within the second half of DS Smith’s financial year. Board Change • Jul 02
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non-Executive Director Alina Kessel was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. New Risk • Jun 24
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.8% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 2.8% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Jun 23
Full year 2023 earnings released: EPS: UK£0.36 (vs UK£0.20 in FY 2022) Full year 2023 results: EPS: UK£0.36 (up from UK£0.20 in FY 2022). Revenue: UK£8.22b (up 14% from FY 2022). Net income: UK£491.0m (up 75% from FY 2022). Profit margin: 6.0% (up from 3.9% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 3.5% growth forecast for the Packaging industry in Europe. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Board Change • May 21
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non-Executive Director Alina Kessel was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • May 16
DS Smith Plc Appoints Eric Olsen to the Company's Board as A Non-Executive Director, with Effect from 15 May 2023 DS Smith Plc announced the appointment with effect from 15 May 2023 of Eric Olsen to the Company's Board as a Non-Executive Director. He will also join the Audit, Nomination and Remuneration Committees of the Board. Eric is currently CEO of Aliaxis, a global leader in fluid management solutions for building, infrastructure, industrial and agriculture applications. A Certified Public Accountant (CPA) and holding a Master of Business Administration from HEC international business school in Paris, Eric was the CEO of LafargeHolcim from 2015-2017 where he ensured the successful merger of Lafarge and Holcim. Prior to that he also held a number of other roles within the Lafarge Group, including as EVP Organisation and Human Resources and EVP in charge of Operations. Eric started his career in the field of M&A at Deloitte & Touche and Banque Paribas and was one of the managing partners of Trinity Associates for 6 years. Eric has dual American and French nationalities and is also a Board Member of Fortera and is a member of the Technical and Strategic Advisory Committee of Breakthrough Energy Ventures Europe, as well as a corporate advisor for Temasek. Reported Earnings • Dec 09
First half 2023 earnings released: EPS: UK£0.17 (vs UK£0.098 in 1H 2022) First half 2023 results: EPS: UK£0.17 (up from UK£0.098 in 1H 2022). Revenue: UK£4.30b (up 28% from 1H 2022). Net income: UK£232.0m (up 72% from 1H 2022). Profit margin: 5.4% (up from 4.0% in 1H 2022). The increase in margin was driven by higher revenue. Revenue is expected to decline by 1.0% p.a. on average during the next 3 years, while revenues in the Packaging industry in Europe are expected to grow by 4.0%. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 29
Upcoming dividend of UK£0.10 per share Eligible shareholders must have bought the stock before 06 October 2022. Payment date: 01 November 2022. Payout ratio is a comfortable 74% and this is well supported by cash flows. Trailing yield: 5.7%. Lower than top quartile of British dividend payers (6.1%). Higher than average of industry peers (3.4%). Recent Insider Transactions • Jun 30
Key Executive recently bought UK£58k worth of stock On the 29th of June, Adrian R. Marsh bought around 20k shares on-market at roughly UK£2.92 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, Adrian R. has been a net seller over the last 12 months, reducing personal holdings by UK£1.2m. Reported Earnings • Jun 22
Full year 2022 earnings released: EPS: UK£0.20 (vs UK£0.13 in FY 2021) Full year 2022 results: EPS: UK£0.20 (up from UK£0.13 in FY 2021). Revenue: UK£7.24b (up 21% from FY 2021). Net income: UK£280.0m (up 54% from FY 2021). Profit margin: 3.9% (up from 3.0% in FY 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 2.5%, compared to a 17% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 6% per year. Upcoming Dividend • Mar 31
Upcoming dividend of UK£0.048 per share Eligible shareholders must have bought the stock before 07 April 2022. Payment date: 03 May 2022. Payout ratio is a comfortable 73% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of British dividend payers (4.7%). Higher than average of industry peers (2.9%). Valuation Update With 7 Day Price Move • Mar 05
Investor sentiment deteriorated over the past week After last week's 15% share price decline to UK£3.00, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 13x in the Packaging industry in Europe. Total loss to shareholders of 4.0% over the past three years. Reported Earnings • Dec 12
First half 2022 earnings: EPS in line with analyst expectations despite revenue beat First half 2022 results: EPS: UK£0.098 (up from UK£0.054 in 1H 2021). Revenue: UK£3.36b (up 16% from 1H 2021). Net income: UK£135.0m (up 82% from 1H 2021). Profit margin: 4.0% (up from 2.6% in 1H 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.0%. Over the next year, revenue is forecast to grow 7.5%, compared to a 11% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 30
Upcoming dividend of UK£0.081 per share Eligible shareholders must have bought the stock before 07 October 2021. Payment date: 01 November 2021. Trailing yield: 2.9%. Lower than top quartile of British dividend payers (4.0%). Lower than average of industry peers (3.4%). Recent Insider Transactions • Aug 26
Key Executive recently sold UK£1.3m worth of stock On the 23rd of August, Adrian R. Marsh sold around 287k shares on-market at roughly UK£4.38 per share. This was the largest sale by an insider in the last 3 months. Adrian R. has been a seller over the last 12 months, reducing personal holdings by UK£1.0m. Reported Earnings • Jun 23
Full year 2021 earnings released: EPS UK£0.13 (vs UK£0.21 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: UK£5.98b (down 1.1% from FY 2020). Net income: UK£182.0m (down 37% from FY 2020). Profit margin: 3.0% (down from 4.8% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Apr 01
Upcoming dividend of UK£0.04 per share Eligible shareholders must have bought the stock before 08 April 2021. Payment date: 04 May 2021. Trailing yield: 2.0%. Lower than top quartile of British dividend payers (4.3%). Lower than average of industry peers (2.7%). Is New 90 Day High Low • Feb 15
New 90-day high: UK£4.10 The company is up 23% from its price of UK£3.33 on 17 November 2020. The British market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Packaging industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£6.28 per share. 
