Financial highlights
· Accelerating corrugated box volume growth
· FY +3.5%, H2 +8.2%
· Further market share gains with FMCG customers in Europe and US
· Trading continues to build positively
· Profit adversely impacted by Covid-19, particularly in Q1
· Positive profit momentum: H2 adjusted operating profit £272m vs. H1 £230m
· Good progress with initial price recovery of input cost increases
· Strong recovery from US business - adjusted operating profit up 70%
· Excellent cashflow generation
· FCF(8) +37% driving net debt reduction to £1,795m 2.2x net debt/EBITDA (31 October 2020 2.4x)
· Statutory profit before tax for year £231m (-38%)
Strategic highlights
· Delivery through Covid-19
· All sites operational throughout the period
· High levels of service providing security of supply for customers
· Continued leadership in Circular Economy and sustainability
· CO2 emissions reduction of 23% since 2015
· Commitment to science-based carbon targets and net zero by 2050
· Well positioned for growth
· Structural trends of e-commerce and sustainability accelerated by Covid-19
· Fully fibre-based, innovative packaging for consumer goods
· Continuing investment in R&D, packaging capacity, innovation and digital platforms
· New financial year started well
And later;
Dividend
The Board considers the dividend to be a very important component of shareholder returns. In December 2020 we announced an interim dividend of 4.0 pence per share. Our policy is that dividends will be progressive and that, in the medium term, dividend cover should be on average of 2 to 2.5 times (relative to adjusted earnings per share), through the cycle. Accordingly, we are announcing a final dividend for this year of 8.1 pence, taking the total dividend for the year to 12.1 pence (2019/20: nil), in line with our policy.
https://www.investegate.co.uk/smith--ds ... 00066204C/