DS Smith PLC (LON:SMDS), the packaging giant, continues to benefit from the trend towards online shopping.
In a pre-close trading update covering the year to the end of April, the company said trading in the second half of the year continued to build positively on the trends and momentum the group reported on last month.
READ DS Smith buoyed by online shopping boom as demand for boxes rises again
Higher sales volumes, initial price recovery and enhanced performance from its US business have been better than expected but input costs have increased materially in the second half, which means the group’s financial performance for the full year will be in line with the board’s expectations.
The group’s growth in e-commerce was described as “excellent” while the rollout of the new digital platform for ordering is going well, the group added.
DS Smith said that its American division had resumed growing strongly after a period of targeted investment in new packaging capacity.
Cash conversion continues to be excellent and debt remains on the way down.
“As a purely fibre-based business, we are benefiting from accelerating consumer trends in online shopping and the drive for a more environmentally conscious life. Environmental sustainability is at the heart of our strategy and we are excited at the significant opportunities this presents for our packaging solutions and, despite the general macro-economic uncertainty, for sustained growth across the business,” said Miles Roberts, the group chief executive of DS Smith.
Shares in the packaging firm were up 1.4% at 419.7p.