DS Smith H1 trading in line with expectations

The FTSE 250 supplier of recycled packaging for consumer goods said volume growth continues to be supported by strong ongoing growth with its large pan-European customers. The group’s return on sales and return on capital employed are expected to show progression over the same period last year, despite the initially dilutive effect of recent acquisitions.

DS said that as in previous periods, it has invested in both organic and inorganic opportunities in the half-year and is “pleased” with the initial performance of the recently acquired display businesses, Creo and Deku-Pack.

Chief executive Miles Roberts said: "The business continues to demonstrate good momentum with growth in line with our expectations, despite the considerable political and economic uncertainty. Alongside our ongoing delivery, we are also investing in our growth markets, particularly in packaging that helps our customers serve consumers across a broader range of retail channels. These opportunities, together with our broader geographical footprint, give us continued confidence in our future."

At 0837 BST, the shares were down 0.5% at 399.40p.