1st May 2018 07:53
LONDON (Alliance News) - FTSE 100-listed DS Smith PLC said on Tuesday trading was in line during its recently-ended financial year, with volume growth remaining strong.
In addition, the paper and packaging firm upped its synergy target for its acquired kraft linerboard maker Interstate - which was first announced in June last year - by USD5 million.
DS Smith said for the year ended on Monday volume growth remained strong with its focus on "sustainable solutions and the accelerating e-commerce sector" helping to further increase in market share, along with "continued growth" in multi-national customers.
"Recovery of increased paper prices, which have risen throughout the year, has continued as expected and we expect return on sales to be in line with the prior year," DS Smith said.
The company said volume growth in the US was "excellent", with the integration of US-based Interstate progressing well.
DS Smith now expects synergies from the deal to reach an annualised rate of USD35 million by the end of the third full year of ownership. This represents an increase of USD5 million on its expectations, and is driven by further anticipated global supply chain benefits.
"We are very pleased with the performance in the year, in particular in the step-up in volumes that we have delivered, and in the successful integration, customer reaction and volume growth within Interstate," said Chief Executive Miles Roberts.
The company will report its full-year results on June 28.
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