(Alliance News) - DS Smith PLC on Monday said trading continues to be very good as it lifted its annual guidance, citing "effective cost mitigation".
The London-based packaging firm now expects adjusted operating profit of at least GBP400.0 million for the half year ending October 31, up 45% from GBP276.0 million a year prior.
DS Smith said "very strong" revenue growth was driving its improved profitability, despite slightly lower like-for-like corrugated box volumes.
For the full financial year, its overall performance is expected to be ahead of previous expectations.
Chief Executive Miles Roberts said that while the company remained wary in the face of an uncertain macroeconomic outlook, it looked to the remainder of the year with confidence.
"I am very pleased with the performance in the year to date and the momentum in our business. We remain focussed on delivering for our customers and managing our costs in an inflationary environment," he added.
DS Smith shares were trading 9.8% higher at 265.40 pence each in London on Monday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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Smith (DS) (SMDS)