DS Smith expresses confidence as second half going well

DS Smith expressed confidence over its performance for the remainder of the year as it reiterated its medium-term financial targets.

In a trading update for the four months since 1 November, the company, which supplies recycled packaging for consumer goods, said volumes and financial returns continue to grow despite ongoing challenging market conditions.

In the second half of the year to date, the business has continued to progress in line with DS Smith’s expectations. It said volume growth has been good, particularly in Western Europe and South Eastern Europe, while growth from pan-European customers continues to benefit from increased scale and coverage.

The company said its return on sales and return on average capital employed have both shown further improvement compared with the same period a year ago.

Chief executive Miles Roberts said: “We are pleased with progress in the year to date as we continue to grow organically and integrate the businesses acquired over the past year, with a positive customer reaction.

“We aim to continue to develop our high quality packaging offering while extending our geographic reach. The performance of the business, together with the customer and market opportunities for growth, gives us confidence for the future."

At 0814 GMT DS Smith shares were down 0.1% to 389.90p.