DS Smith PLC on Thursday reported a decline in annual earnings but labelled its showing as ‘robust’ amid tricky market conditions and high interest rates.

The London-based paper and packaging company said revenue in the year to April 30 declined 17% to £6.82 billion from £8.22 billion, sending pretax profit down 24% to £503 million from £661 million.

The company noted that net finance costs increased 39% to £103 million from £74 million year-on-year amid a higher interest rate environment.

‘We are pleased to have delivered a robust performance, despite the challenging environment, driven by our focus on customers, quality, service and innovation together with the benefit from our self-help productivity initiatives,’ Chief Executive Officer Miles Roberts said.

DS Smith maintained its final dividend at 12 pence per share, giving a full-year payout of 18p, also unmoved on-year.

Shares were up 1.8% to 358.20 pence early Thursday in London.

Looking ahead it added: ‘The positive trends in packaging volumes from the second half of last year have continued into the current financial year and we remain focused on pricing, operational efficiency and tight cost control. The increasing demand is resulting in higher paper and other input costs, including old corrugated cases. We anticipate this will be reflected in packaging price rises, with the benefits expected to be weighted to the second half of our current financial year and provide further momentum into FY26.’

DS Smith in April accepted an all-share takeover from Memphis, Tennessee-based International Paper Co, valuing the FTSE 100 listing at £5.8 billion on a fully diluted basis.

Shortly after that agreement was struck, Mondi PLC pulled out of the race to acquire DS Smith.

CEO Roberts said Thursday: ‘We are working collaboratively with International Paper to satisfy the offer conditions and bring about the successful completion of the transaction.’

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