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(Alliance News) - DS Smith PLC on Thursday said box volume growth was strong in the first half of the year as the packaging company expects to report interim results in line with expectations.
The company will report results for the six months ending this coming Sunday on December 9.
DS Smith pointed to positive box volume growth, good cost recovery through increasing pricing and an enhanced performance from its US business, which offset significant input cost increases.
The London-based firm highlighted that the fast moving consumer goods sector accounted for over 80% of volume during the period, with continuing gains with large multinational customers. Regionally, DS Smith noted it has seen grown in all areas, with the US and Southern Europe performing "especially well".
However, DS Smith said input costs including energy, old corrugated container costs and logistics have seen significant increases throughout the half year which, combined with high demand, have led to significant paper price rises.
Chief Executive Officer Miles Roberts said: "Overall financial performance remains in line with our expectations with very positive box volume growth, good cost recovery through increasing pricing and an enhanced performance from our US business all combining to more than offset significant input cost increases.
"Looking forward, whilst the macro-economic environment remains uncertain, sustainability and the circular economy, together with e-commerce and digital enablement, remain more relevant than ever and are strong structural drivers of growth. Our long-term strategic focus in these areas as a solely fibre based business together with our comprehensive supply coverage, innovation platforms and robust supply chains, underpin our confidence in the prospects for the business."
The stock was up 2.6% at 389.40 pence on Thursday morning, among the best performers in the FTSE 100.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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