Shareholders of DS Smith (LON:SMDS) have seen their shares bounce following an optimistic update from the firm.
The FTSE 100 listed firm said that it had seen like for like business growth across its’ third quarter.
On an even better note, DS Smith added that their results have not been impacted by the outbreak of the coronavirus – which will give shareholders reassurance.
The packaging firm said that it had seen like fo like corrugated box volume growth, which had met expectations.
DS Smith added that this performance was despite despite macroeconomic complications – which have hindered global businesses and stocks.
The firm added that it had seen ‘good performances’ across its operations in the UK, Eastern Europe and Iberian Peninsular.
Notably, the firm added that they have seen their ex-Europac packaging operations performing well and FMCG and e-commerce businesses growing strongly over the festive period.
North American business has been progressing, as DS Smith noted that initial customer reaction to a box plant had been very pleasing.
Miles Roberts, Group Chief Executive, said:
“The Group has delivered a robust performance during the period within a challenging macro-economic environment. Whilst we continue to monitor events and work closely with all our suppliers and customers, we have not to date seen any material impact to our business from coronavirus.
Our sustainable packaging offering including the replacement of plastics is becoming ever more important to our FMCG and e-commerce customers and we continue to gain market share.
Despite continued uncertainty in the macro-economic environment, our focus on pricing discipline, enhanced cost and efficiency improvements, and cash generation, support our expectation of further good progress in the year.”
DS Smith report productive half year trading
At the start of December, DS Smith noted that they had seen a productive half year of trading.
The Group’s revenue rose 4% year-on-year to £3.19 billion. This lead a jump in adjusted operating profit of 15% and profit before tax of 31%, up to £351 million and £213 million respectively.
DS Smith shareholders enjoyed similar success, with the Company’s adjusted EPS up 5% to 17.4p, and their interim dividend per share rising 4% to 5.4p per share.
The Company celebrated ‘Record Group profitability’ despite economic headwinds. It added that it saw good organic profit growth in its European division, while progress in its US business was offset by the impact of export paper pricing.
Shares in DS Smith trade at 335p (+3.97%). 4/3/20 12:25BST.
