In its pre-closing statement, DS Smith has said that it continues to perform in line with its expectations, with the industry and business trends consistent with the trading update of 4th September 2018.
The company expect return on sales and adjusted operating profit in the half-year to be materially ahead of the comparable period following recovery of increased input costs earlier in the year and good volume growth from its FMCG focussed business. The company also said the integration of Interstate Resources continues to go well, with major customers now procuring from them in both Europe and the US.
The statement goes on to say that the company remains highly focussed on cash management and anticipate cash flow from operations to be significantly ahead of the prior period and that the previously announced strategic review of its plastics division is progressing well. The regulatory process for the proposed acquisition of Europac continues to be in line with expectations, with completion of the acquisition expected by the end of the calendar year.
Miles Roberts, Group Chief Executive, said, “We are very pleased with the performance in the half year, in particular the margin development and the continued excellent progress and integration of Interstate Resources. We continue to see strong customer support to our innovative sustainable packaging, responding to the dynamic requirements of our customers. We expect good ongoing volume and market share growth, look forward to the completion of Europac and view the future with confidence.”
