Construction of additional manufacturing sites going to plan
DS Smith, the packaging company, is benefitting from a boom in online sales across Europe, as its box volumes surged past levels seen before the pandemic.
In its most recent update the FTSE 100 company said that it had seen growth occur in both 2019 and 2020 during the months to 1 May on demand in the consumer and commerce sectors.
DS Smith has felt the impact of rising costs in energy and transportation, but maintained that it is in a good position to recover thanks to high levels of demand.
“The long-term structural growth drivers of e-commerce and sustainability have been accelerated by the effects of Covid,” CEO Miles Roberts said.
“Accordingly, while the macroeconomic environment remains uncertain, we remain confident about the prospects for the business in this financial year and beyond.”
Ongoing construction of additional manufacturing sites in Poland and Italy is going according to plan with operations expected to begin in Q4 of the current financial year.
Each plant has already received advanced commitments from customers for over 50% of their capacity.
The DS Smith share price is up by 2.13% during the morning session on Tuesday.
