DS Smith PLC (LSE:SMDS) said cardboard box volumes have continued to fall after a 5.8% drop in the year just ended.
Economic conditions remain volatile and box volumes have remained lower than normal, said Miles Roberts, chief executive, though he added trading for the year to date is in line with expectations.
Demand for cardboard boxes has been easing since a huge spike during the covid pandemic when there was a surge in online shopping.
Germany experienced the highest levels of decline due to a larger market exposure to the industrial sector, with the UK market impacted by a decline in the e-commerce sector following particularly strong growth over a number of years, said DS Smith.
Increases in box prices in packaging and an increase in sales prices for externally sold paper and volumes of recycled fibre more than offset this, it added.
That helped FTSE 100 member DS Smith post healthy numbers for the year just ended.
Revenue increased 11% at constant currency and 14% on a reported basis to £8.22bn (£7.24bn) while profit before tax jumped 75% to £661mln.
DS Smith has also been helped by businesses reducing their use of plastic and Roberts added that during the year it had replaced 300mln bits of plastic with fibre alternatives.
The dividend for the year rises by 20% to 18p.