7th Sep 2021 08:35
(Alliance News) - DS Smith PLC on Monday said that box volumes are higher than pre-pandemic levels but cautioned on input cost pressures.
Shares in FTSE 100-listed DS Smith were 2.5% higher at 460.70 pence each in London, making it the top performer in the blue-chip index early Tuesday.
The packaging firm said box volumes had grown "very strongly" in the period since May 1, rising annually and topping levels seen in 2019. It affirmed that Covid-19 has accelerated a drive to sustainability and e-commerce.
However the company warned of mounting cost pressures: "Input costs have continued to rise with notable increases in the cost of energy and transportation. Combined with the cost of old corrugated cases remaining high, this has resulted in further significant increases in the price of paper. Given the strong demand for our packaging we have seen good progress towards recovering these increases."
Despite the cautionary note on costs, the group reported it was making progress towards recovering the increasing costs of production through higher prices and that it was pleased with progress made since it ended its last financial year in April.
"Accordingly, while the macroeconomic environment remains uncertain, we remain confident about the prospects for the business in this financial year and beyond," Chief Executive Miles Roberts said.
By Will Paige; [email protected]
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