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DS Smith trades in line with expectations after strong first half

9th Mar 2023 10:13

(Alliance News) - DS Smith PLC on Wednesday said it continues to trade in line with expectations, despite seeing lower corrugated box volumes.

The London-based packaging firm said that since November 1 it continued strong trading in line with management expectations.

It noted that the positive trends in profitability experience in the first half of financial 2023 have continued into the second half of the financial year. The company added that its financial performance was in line with its expectations.

In December, DS Smith said revenue in the half-year ended October 31 rose 28% to GBP4.30 billion from GBP3.36 billion a year before. Pretax profit surged 82% to GBP322 million from GBP177 million. It also announced an interim dividend of 6.0 pence per share, up 25% from 4.8p a year before.

DS Smith said that since then it has "continued to take market share", driven by its focus on sectors food and drinks.

However, like-for-like corrugated box volumes during the second half have been lower than the comparative period with market weakness and evidence of de-stocking over Christmas and New Year.

Chief Executive Miles Roberts said: "We have continued to perform well in the second half of the year despite the volatile macro-economic conditions. As expected, profitability and returns have grown strongly and cash generation remains good. We continue to stay very close to our customers and their evolving needs, which, together with a relentless cost focus and robust supply chain, positions us well for the remainder of the year and into our next financial year."

Shares in DS Smith were down 4.5% to 327.70 pence each in London on Thursday morning.

By Sophie Rose, Alliance News reporter

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