7th Mar 2018 08:18
The integration of its North American business is progressing "very well", DS Smith said, as it also closes the acquisition of a smaller Romanian peer.
The FTSE 100-listed packaging firm said there was "good progress" in its business during the three months starting November 2017. This, DS Smith said, was due to the "increasing relevance of sustainable packaging and our compelling customer offering".
Box volume growth remained "strong" in the period with on-going good progress with its multinational and e-commerce customers. This continued the "positive trend" experienced during the first six months of the year.
The integration of its North American business was also described as going "very well". Performance from the unit was continuing to be "ahead" of initial expectations with packaging volume growth "significantly ahead" of the company average.
"The recovery of recent increases in paper prices is progressing well, as expected", DS Smith said in a statement. "This, together with operational leverage coming from the strong top-line growth, means that return on sales is expected to increase in this H2 period as compared to H1, and the full year return on sales is expected to be in line with that for the prior year, with trading overall in line with our expectations."
DS Smith completed its
"I am very pleased with how our strategy is delivering for customers and producing strong results. We continue to gain market share by delivering packaging that adds value for our customers, as they look to improve the efficiency of their own operations," DS Smith Chief Executive Officer Miles Roberts said. "The excellent reaction from US customers reflects the differentiated offer we bring, including our expertise in retail ready packaging and e-commerce. At the same time, the benefit of a global supply platform for paper and fibre is being seen in the improved operational efficiency of our US assets and greater co-ordination across the group."
"We are excited by the structural drivers supporting the growth of sustainable packaging and the opportunities for DS Smith," Roberts added. "Our outlook therefore is positive and we remain confident in the future."
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