DS Smith has issued a trading update in respect of the period since 1 November 2022.
The company reports continued strong trading in line with management expectations, with the positive trends in profitability experienced in H1 continuing into H2 with the financial performance in line with expectations.
The report goes on to say that the company has continued to take market share, driven by strategic focus on resilient sectors such as food and drinks, although like for like corrugated box volumes during H2 have been lower than the comparative period with market weakness and evidence of de-stocking over Christmas and New Year. They say that their robust and flexible supply chain, together with ongoing cost management initiatives and resilient pricing, have more than offset the lower volumes, driving further margin progression, strong profit growth and improvement in return on capital.
Miles Roberts, Group Chief Executive, said, “We have continued to perform well in the second half of the year despite the volatile macro-economic conditions. As expected, profitability and returns have grown strongly and cash generation remains good. We continue to stay very close to our customers and their evolving needs, which, together with a relentless cost focus and robust supply chain, positions us well for the remainder of the year and into our next financial year.”