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Forestry & Paper

DS Smith trading in line, pricing more resilient than expected

DS Smith PLC (LSE:SMDS) said trading remains in line with improved corrugated box volumes and more resilient pricing than expected.

In a pre-close trading update, the packaging specialist said it expects adjusted EBITDA for the six months to 31 October to be approximately £360 million.

As expected, like-for-like corrugated box volume performance has improved quarter on quarter, albeit remaining below the prior year, while pricing has remained more resilient than expected, the firm said.

Reduced input costs and cost mitigation efforts have broadly offset the price declines, it added.

Miles Roberts, chief executive, said: “Despite an ongoing weak macro-economic environment, we expect volume performance to improve, with second half volume performance anticipated to be better than the first half.

“We are positioned well for the remainder of FY24,” he added.

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