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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
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Forestry & Paper

Cardboard box demand key for DS Smith update

Cardboard box maker DS Smith PLC (LSE:SMDS) will provide a first-quarter update alongside its annual shareholder meeting on Tuesday 5 September, having reported early in the summer that sales volumes were continuing to fall.

Having enjoyed a surge in demand during the pandemic online shopping splurge, demand for cardboard boxes has since been easing.

Volumes and pricing updates are likely to be the top priorities for investors in the trading statement.

"Word from management was that trends were improving - next week will shed light on whether that has continued over the quarter or not," said analysts at Hargreaves Lansdown.

"Valuations across the packaging sector have been under pressure recently, as markets weigh up the extent of the volume issues and the balancing act at play with prices.

"Hikes and cost-cutting are the main reason DS Smith was able to post strong profit growth last year. Since then, paper prices have come down and box pricing will likely follow suit. The scale of any declines will likely be key, as will any impact on the prices it’s able to charge customers."

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