DS Smith Q3 trading in line

Packaging company DS Smith said on Thursday that third-quarter trading was in line with management expectations, but cautioned that customers had been de-stocking.

In an update for the period since 1 November, the company said the positive trends in profitability seen in the first half have continued into the second.

The group has continued to take market share, driven by its strategic focus on resilient sectors such as food and drinks, although like-for-like corrugated box volumes in H2 have been lower than the comparative period. DS Smith put this down to 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."

At 1100 GMT, the shares were down 4.6% at 327.30p.