DS Smith pre-close trading update

DS Smith Plc has issued a pre-close trading update in respect of the half-year ending 31st October 2016. The business has again made good progress and performance remains in line with expectations. Volume growth continues to be supported by strong ongoing growth with large pan European customers. The return on sales and return on capital employed are expected to show progression over the comparative period last year despite the initially dilutive effect of recent acquisitions.

As in previous periods, the company has invested in both organic and inorganic opportunities in the half-year and they are pleased with the initial performance of the recently acquired display businesses, Creo and Deku-Pack, which form an important part of our strategy for this growth market segment.

Miles Roberts, Group Chief Executive, said, “The business continues to demonstrate good momentum with growth in line with our expectations, despite the considerable political and economic uncertainty. Alongside our ongoing delivery, we are also investing in our growth markets, particularly in packaging that helps our customers serve consumers across a broader range of retail channels. These opportunities, together with our broader geographical footprint, give us continued confidence in our future.”

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