DS Smith reports good packaging volume growth

As it approaches its year end, recycled packaging specialist DS Smith reported strong volume growth and good progress with integrating five acquisitions in the period.

The good volume growth in the year to 30 April follows the organic growth of 2.9% generated during the first half of 2017.

Business continued to perform in line with management expectations, the FTSE 250 group confirmed, enabling it to meet all of its medium-term financial targets of volume growth, return on sale, return on cash employed, cash conversion and leverage.

Performance of recently acquired businesses -- including Creo in the UK, Deku-Pack in Denmark, Portugal's P&I Display and Gopaca, and Parish Manufacturing in the US -- was said to be "progressing well".

Chief executive Miles Roberts said: "We are pleased with the performance in the year, despite challenging economic conditions and have seen DS Smith grow again, both organically and through acquisitions."

Broker Numis said that after raising its 2017 forecasts for adjusted operating profit to £446.3m and adjusted earnings per share to 32p, it was leaving its estimates unchanged.

"However, we note the potential for a firmer pricing environment to provide a tailwind to profits in due course."