30th Apr 2019 09:14
LONDON (Alliance News) - Packaging firm DS Smith PLC said its trading in financial 2019, ending Tuesday, was in line with its own expectations.
DS Smith said it saw "ongoing growth" in corrugated box volumes, with an increase in market share driven by its "resilient" fast-moving consumer goods-focused customer and "strong" e-commerce packaging.
"All regions have been in growth, with particular strength in the UK, Italy and Poland, partially offset by some volume weakness in certain export-led markets, including Germany," the company said.
DS Smith expects to report its margins have "progressed further" in the second half, with "strong" operating cashflow generation.
"Our US business continues to perform well with strong margins and returns ahead of our acquisition case. Integration work on the Europac business is going well and we are very pleased with progress to date," added the company.
Chief Executive Miles Roberts said: "The financial year ending April 30 has been one of substantial progress. The acquisition of Europac has significantly enhanced our European operations and the group has also been strengthened strategically and financially by the agreed disposal of our Plastics division we announced in March. Notwithstanding the current economic uncertainties, this progress, together with our focus on the stable fast-moving consumer goods market, and enhanced cost and efficiency improvements position the business well."
DS Smith expects to release its results for the financial year ended April 30 on June 13.
Shares in DS Smith were down 3.1% Tuesday morning at 361.30 pence each.
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