The parent company of UK wholesaler Spicers, DS Smith, has announced solid results for its financial year 2008/2009 with combined revenue for its packaging and office products business up 7%.1 to £2.1 billion. Spicers’ sales increased 11.7% to stand at £720.5 million.

In Spicers UK, turnover increased but operating profit came under significant and increasing pressure. This was due to much lower sales of traditional products, as well as the highly competitive nature of this market. Spicers says that a number of actions based on improving the sales mix and lowering costs are underway to reverse this downward trend.

In the continental European businesses, which account for just over 50% of Spicers’ total revenue, profit was slightly ahead of the previous year, assisted by the strength of the euro. The company reported difficult trading conditions for its more established businesses depressed both revenue and operating profit, but results were good relative to their markets. Spicers’ developing German and Italian operations continued to grow both their revenue and profit.