(Alliance News) - DS Smith PLC said on Thursday it has seen good, continued momentum during the second half of its financial year.
The London-based packaging company now expects adjusted operating profit between GBP605 million to GBP615 million for the financial year ending April 30. In financial 2021, adjusted operating profit amounted to GBP502 million, so at best, it expects a 23% rise.
DS Smith explained like-for-like corrugated box volume had grown 5% in the year and that continuing packaging price increases had been more than offset by input cost increases.
Chief Executive Miles Roberts said: "Strong management of our supply chain and cost base, together with volume growth and increasing packaging prices to recover the increasingly higher input costs, is delivering the expected strong profit growth.
"Within Europe our Eastern and Southern regions have performed ahead of the group average, and in the US we are seeing the benefit of the Indiana site contributing to further very strong volume growth in the region," he continued.
The packaging company said that, due to the invasion of Ukraine and ongoing impact on its business in Ukraine, it is impairing its investment with an anticipated one-off non-cash charge of around GBP30 million.
DS Smith explained it has a minority investment in a Ukrainian business which predominantly serves Ukrainian customers with limited sales in Russia. The contribution to its financial 2021 results was GBP4 million after tax.
Shares in DS Smith were up 1.2% at 327.50 pence on Thursday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Smith (DS) (SMDS)