FTSE100 group DS Smith is one of the biggest listed companies in the country and, like eEnergy, it is helping businesses to become greener.
The paper and packaging group specialises in cardboard boxes for companies ranging from Nestle to Next and from L’Oreal to Unilever. Online retailers are big customers too, and the group makes a total of more than 40million boxes every day.
Most of these are produced from recycled material. DS Smith is Europe’s largest recycler of paper and cardboard, an accolade that helps the group win business from companies keen to burnish their eco-credentials.
Boxing clever: DS Smith specialises in cardboard boxes for companies ranging from Nestle to Next and from L’Oreal to Unilever
The group’s financial year runs to April 30 and half-year figures to October last year were hit by several Covid-related factors. Sales fell, costs rose and profits sank 54 per cent to £97million.
Nonetheless chief executive Miles Roberts is optimistic and has reinstated the dividend, with a 4p interim payout.
Confidence continues to grow and brokers predict a strong rebound in sales, profits and dividends as the pandemic eases
Midas verdict: Midas tipped DS Smith ten years ago when the shares were £2.06. On Friday, they closed at £3.92, having been above £5 in 2018.
A big acquisition in Spain, fears of economic uncertainty and the suspension of the dividend last year have taken their toll but the stock should rise. Shareholders should keep the faith. New investors could find value at this level too.
Traded on: Main market Ticker: SMDS Contact: dssmith.com or 020 7756 1800
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