DS Smith PLC (LSE:SMDS) said trading remained “very good and consistent”, with adjusted operating profit for the half year to 31 October 2022 expected to be at least £400mln.
The improved profitability has been driven by strong revenue growth and effective cost mitigation, the sustainable packaging provider said, despite slightly lower like-for-like corrugated box volumes.
Cash generation is "strong" and the overall performance for the current full financial year is anticipated to be ahead of the company’s own prior estimates.
“While the macro-economic outlook remains uncertain, performance this year is ahead of our previous expectations and we look forward to the remainder of the year with confidence,” chief executive Miles Roberts commented, adding that the company remains focused on delivering for its customers and managing costs in an inflationary environment.
"I am very pleased with the performance in the year to date and the momentum in our business,” Roberts said.