DS Smith has issued a pre-close trading update in respect of the half year ending 31 October 2023.
The company says trading continues in line with its expectations. It reported like for like corrugated box volume performance has improved quarter on quarter, albeit remaining below the prior year. They also said pricing has remained more resilient than expected, reflecting its strong customer relationships, ongoing innovation and high service levels. Reduced input costs and cost mitigation efforts have broadly offset the price declines.
The report went on to say that DS Smith continue to invest in the business, including the recently opened group-wide innovation hub, R8. Overall trading remains in line with expectations, with adjusted EBITA for the 6 months to 31 October 2023 expected to be approximately £360m.
“Overall, I am pleased with our robust performance during the first half,” said Miles Roberts, Group Chief Executive. “Despite an ongoing weak macro-economic environment, we expect volume performance to improve, with second half volume performance anticipated to be better than the first half. We continue to invest behind our customers, focusing on providing them with value added solutions and this, together with our strong operational performance, means we are positioned well for the remainder of FY24.”