DS Smith upbeat as expansion continues

Recycled consumer goods packaging supplier DS Smith updated the market on its trading for the period since 1 November on Thursday.

The FTSE 250 company said it performed in line with its own expectations, continuing to build on the progress made in the first half of the year with sustained good volume growth.

As before, the growth had been particularly strong from its e-commerce businesses, which was an area of considerable focus for the board.

Pan-European customer volumes continued to grow ahead of the group average rate as customers recognised the benefit of a “coordinated multinational” solution to their packaging requirements, the board claimed.

In the first half of the year, DS Smith acquired two businesses - Creo in the UK and Deku-Pack in Denmark - for a total of £37m.

Since 1 November the board said it continued to invest and acquire businesses in attractive geographies and growth market segments.

As previously announced, it completed the acquisitions of P&I Display and Gopaca in Portugal, expanding its position in the Iberian market and building on its pan-European point of sale capability.

DS Smith also completed the acquisition of Parish Manufacturing, a US manufacturer of flexible plastics packaging.

The board said its outlook remained positive, despite ongoing challenging economic conditions.

Volumes continued to grow well and the board continues to anticipate performance in line with its medium term financial targets, and viewed the future with confidence.

“We are pleased with the sustained, consistent progress of the business, both organically and from the contribution from acquired businesses,” said group chief executive Miles Roberts.

“Customer and consumer trends continue to drive the requirement for sophisticated, innovative packaging, and we have the scale and expertise to invest behind these trends and consistently drive growth.

“Accordingly, we remain confident for the future.”