DS Smith has issued a pre-close trading update in respect of the year ending 30 April 2023. In the report, the company said:
- Strong growth in profitability and financial performance, continuing the trends described on 9 March 2023 and in line with expectations;
- Expected adjusted EBITA for FY23 in the range of £850 – £860m;
- Excellent customer relationships, and high levels of service, product innovation and sustainability focus have driven resilient packaging prices during the period;
- Combined with good cost management, this has more than offset the weaker than expected volumes to deliver growth in profitability and delivery in line with medium-term financial targets;
- Continued strong free cash flow performance for the full year, leading to an expected reduction in our net debt / EBITDA leverage ratio to approximately 1.3 times as at 30 April 2023 (1.6 times at 30 April 2022).
Miles Roberts, Group Chief Executive, said, “I am pleased with the excellent performance we have delivered this year, despite the volatile macroeconomic conditions. Our relentless focus on more resilient international FMCG customers to meet their rapidly evolving needs has enabled us to increase our share of their business and, together with ongoing cost management, has driven very strong profit growth. We remain committed to investing in our business, leveraging our scale, flexible supply chain, supporting our deep customer relationships with innovative fibrebased solutions to lead the transition to a more circular economy, positioning us well as we enter the next financial year.”