DS Smith PLC (LON:SMDS) revealed today that it has made “an encouraging start to the year" with trading in line with the packaging firm's expectations.
In a trading update for the period since 1 May 2017, delivered ahead of its Annual General Meeting today, the FTSE 250-listed firm said it has seen “strong demand for our enhanced packaging solutions across the business with the rate of like for like volume growth being well ahead of the comparative period last year.”
READ: DS Smith expands in America with US$920mln acquisition of 80% of Interstate Resources
The recycled consumer goods packaging supplier added: “Progress with our pan-European and e-commerce customers was particularly strong again and the recovery of recent increases in paper prices is progressing as expected, with the impact of the short term recovery period continuing to be mitigated by operational leverage coming from the strong top-line growth.”
DS Smith noted that it completed the acquisition of Interstate on August 25, and said trading at the US firm in the calendar year to date is fully in line with its expectations at the time of the acquisition.
In early trading, DS Smith shares were 1.4%, or 6.9p higher at 502.5p.
Strong volume momentum
In its statement, Miles Roberts, DS Smith’s group chief executive, said: "We are very pleased with the reception by our customers to our continuing development of market leading packaging solutions.
“These solutions are increasingly valued as they help our customers to improve their own sales, reduce total costs and mitigate risk. This has resulted in the strong volume momentum seen last year accelerating into the current year to date.”
He added: “The response from the employees and customers to our acquisition in the US has also been very pleasing. Our outlook therefore is positive and we have confidence in the future."