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(Alliance News) - DS Smith PLC on Tuesday said that it is trading in line with its expectations, citing "pricing momentum and good cost control" as its main business drivers.
The London-based packaging firm said, in the first quarter of financial year 2023, like-for-like corrugated box volumes declined "slightly". However, for the full year, DS Smith expects growth of at least 2%.
It noted that most input costs, including energy, have increased significantly.
DS Smith said that, with "good cost control", it has managed to mitigate energy cost increases through efficiency initiatives and by a long-term hedging programme.
Currently more than 90% of natural gas costs for financial year 2023 and around 80% for financial year 2024 have been hedged. These costs are being recovered through increase packaging pricing, it explained.
Looking ahead, DS Smith said that outlook for financial year 2023 remains unchanged, with an expectation of a "significant improvement" in performance.
However, the company remains "very mindful" of the wider macroeconomic environment.
Chief Executive Miles Roberts said: "We are focusing on ensuring the highest levels of security of supply and customer service and are very pleased with the ongoing support we receive from both our customer and supplier base. Whilst the industrial sector is showing some weakness, our FMCG business remains resilient."
Separately, DS Smith said that Finance Director Adrian Marsh plans to retire once a successor is in place.
Marsh has been finance director of the company since September 2013.
Back in 2020, Marsh announce plans to move to London-based bookmaker William Hill PLC as chief financial officer, but later decided against the move amid Covid-19 disruption.
The process to appoint Marsh's replacement will now begin, DH Smith added.
Chief Executive Miles Roberts said: "Adrian Marsh joined the board in September 2013 and has been a very valued colleague, making a major contribution to the growth and success of the company over the past decade."
Shares in DS Smith were up 3.7% to 272.60 pence each in London early Tuesday.
By Sophie Rose; sophierose@alliancenews.com
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