DS Smith PLC (LSE:SMDS) announced that like-for-like volume growth has continued despite macro-economic and geo-political uncertainties and said current events have not changed the company's outlook for the financial year, with the second half of the year continuing to show positive results.
In an update covering the period since November 1, 2021, the cardboard packaging maker stated it has been trading in line with expectations, with overall volume growth and packaging price increases outweighing ongoing rises in input costs.
It anticipates mid-single digit percentage like-for-like volume growth for the year to April 30, 2022 and further leverage reduction from 1.9x reported as at October 31, 2021.
The company said it has "been shocked and appalled by the Russian invasion of Ukraine", adding that production has been suspended at a Ukrainian business in which it has a minority investment. As of April 30, 2021, the investment was worth £23mln and contributed £4mln after taxes to FY21 results.
Based on business mix and relative growth rates in the comparative period, Eastern Europe has been its fastest-growing region, while increased customer demand has led to greater utilisation of the Indiana plant in North America, the company said.
Miles Roberts, group chief executive, said: "Our geographic footprint, secure supply chain and customer offering focussed on innovative sustainable packaging solutions remains compelling to our resilient customer base of FMCG [fast moving consumer goods] multinational companies and has driven continued good volume growth, despite the strong comparatives."