Dec 07, 2011. /Lesprom Network/. In the six months to 31 October 2011 DS Smith has continued to grow corrugated packaging volumes and gain market share while also expanding margins, as our mix of business changes in favour of higher value-added products, plus the benefits of efficiency savings and operational gearing come through, as the company said in a press release received by Lesprom Network. Group revenue from continuing operations for the half-year to 31 October 2011 is up 26% to GBP 1,034.5 million, with that increase being partly driven by the inclusion of Otor for the full six month period compared to the prior year, when it was consolidated for only two months, following its acquisition on 1 September 2010. Excluding the impact of acquisitions and currency, revenue from continuing operations grew 11%. This reflects growing volumes and the period-on-period impact of input cost recovery. Adjusted operating profit from continuing operations is up 41% to GBP 78.3 million. GBP 10.0 million of this increase is the inclusion of Otor for a full six months of the period. Excluding the impact of acquisitions and currency, operating profit from continuing operations grew 22%. Return on sales from continuing operations increased by 80 basis points to 7.6% . The strong increase in profits from the underlying business is driven by success in recovering rising input costs, margin expansion from cost efficiencies and operational leverage. Profit after tax for continuing operations after exceptional items increased 18% to GBP 28.9 million while, profit after tax from continuing operations before amortisation and exceptional items, increased 49% to GBP 48.1 million. Miles Roberts, Group Chief Executive, said: “I am pleased with the improved performance of every division over the past six months, which has seen the Group deliver a return on sales within the target range. We have again delivered a return on capital which is comfortably above our cost of capital and have remained focused on recovering the year-on-year increases in input costs through pricing. We have made considerable strategic progress, with the announced disposal of Spicers and the exit of two paper mills on track, leaving the group focused on its recycled packaging businesses. The integration of Otor shows how our customers are keen to develop their businesses with us as we expand DS Smith’s geographic footprint in Europe. We have a strong balance sheet with only a limited Group profit exposure to paper, and will evaluate opportunities to pursue acquisitions within a fragmented packaging sector that can meet our medium term objectives. We remain confident in the trading outlook for the remainder of this financial year, due to our resilient, growing customer base, despite the uncertain macro-economic environment. The actions that we are taking to develop the packaging business and to drive efficiency improvements, will position the Group well in the more challenging trading environment. Our continuing investment in the packaging business underpins our confidence that the Group will continue to develop positively in the medium term.” DS Smith Plc is an international supplier of recycled packaging and Europe’s leading office products wholesaler.