Half Year Results 

DS Smith boxes clever with ‘Made2fit’

DS Smith boxes clever with ‘Made2fit’

DS Smith (SMDS) has received the green light from the Board of the Spanish Securities Market Commission to acquire Spanish packaging company Europac. A regulatory hurdle overcome, but also significant in the context of the substantial reduction in net debt – a temporary effect that will shortly be reversed in order to pay for the deal, expected to complete in the next month or so. Armed with £1bn (held as restricted cash) from its July rights issue and with £209m in free cash flow, the packaging group has pared back a hitherto hefty burden, reducing the net debt/cash profits (ebitda) multiple from 2.2 to 0.8 since the April 2018 year-end.

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