DS Smith expects to meet full-year forecasts

Recycled packaging supplier DS Smith updated the market ahead of its year-end on Wednesday, reassuring investors that group performance remains in line with expectations.

The FTSE 250 firm said its trends have continued, with good volume growth across the business, and returns on sales and on average capital employed improved on a year ago.

Growth from Smith’s large pan-European customers was described as particularly strong, also driven by the company’s fast-growing e-commerce solutions division.

Smith said that, in line with its strategy, it was continuing to expand its geographic footprint and customer offering.

It has invested around €600m in acquisitions in the financial year, with all performing fully in line with expectations.

The group’s most recent acquisition was TRM Packaging, a producer of specialist corrugated packaging and retail-ready packaging, based in the north west.

"Packaging, and the supply chain in which it plays a part, is of great importance to our customers as they adapt for the evolving multi-channel retail environment,” said group chief executive Miles Roberts.

“Over the year we have grown organically and by acquisition while at the same time improving our margin, and we remain excited about the opportunities for the business."

DS Smith is due to publish its results for the year to 30 April on 23 June.