DS Smith on track despite subdued German volumes
DS Smith on Tuesday assured investors that its expectations for overall financial performance remained unchanged despite the continued macro-economic uncertainty.
The FTSE 100-listed packaging business said strong pricing discipline, ongoing operating cost efficiencies and new business wins in Europe and the US had allowed the company to progress despite subdued volumes in Germany, as well as in other economies with significant export-led market exposure.
Miles Roberts, chief executive of DS Smith, said: "The underlying drivers of demand for sustainable corrugated packaging remain strong and our leading offerings for highly resilient fast-moving consumer goods and e-commerce customers give us confidence of volume and market share growth."
Meanwhile, DS Smith reported that its integration of Europac, which was acquired back in January, and the associated synergy deliveries wre progressing very well, while completion of the disposal of the plastics division was expected before the end of the current calendar year.
Construction of the company's greenfield packaging plant in Indiana, which it said would significantly enhance its capabilities in the US, was fully on track, with production expected to start in this calendar year.