6th Nov 2018 07:59
LONDON (Alliance News) - FTSE 100-listed DS Smith PLC said Tuesday it has traded in line with expectations in the first half of its financial year as industry and business trends remained consistent with the prior quarter.
The recycled packaging provider expects adjusted operating profit and the return on sales for the six months to the end of October to be "materially ahead" of the year before.
Adjusted operating profit in the prior year was GBP251 million, while return on sales was at 9.0%.
The improved performance has been attributed to the recovery of increased input costs earlier in the year and volume growth in the group's Fast Moving Consumer Goods business.
In addition, the regulatory process for the acquisition Europac is ongoing, with the deal expected to be completed by the end of calendar 2018.
"We are very pleased with the performance in the half year, in particular the margin development, and the continued excellent progress and integration of Interstate Resources," said Chief Executive Miles Roberts.
"We continue to see strong customer support to our innovative sustainable packaging, responding to the dynamic requirements of our customers. We expect good ongoing volume and market share growth, and look forward to the completion of Europac and view the future with confidence."
DS Smith will publish its interim results on December 6.
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