DS Smith half-year trading in line
FTSE 250 packaging company DS Smith said trading in the half-year was in line with its expectations, with return on average capital employed at the upper end of the target range.
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Smith (DS)
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In a trading update for the half-year to 31 October, the company said volume growth has been consistently very strong across all of its regions, driven by its pan-European and e-commerce customers. In addition, it is continuing to recover the increase in paper prices with its packaging customers.
DS Smith added that return on sales for the period is broadly consistent with that reported for the full year to 30 April.
It said the process of integrating US-based Interstate Resources, which it bought in August, is proceeding "very well" and it remains confident about the prospects for the business.
Chief executive Miles Roberts said: "We are pleased with the consistently strong organic progress of the business. Customers continue to demand high-quality, innovative packaging on a multi-national basis and we have the scale and expertise to serve them.
"We have also strengthened our business model further through selective acquisitions, in Europe and US, driven by customer demand. As such, we view the future with confidence."
At 0816 BST, the shares were up 1.5% to 523p.