DS Smith improves ESG rating, retaining ‘Prime status’
DS Smith (LON:SMDS) confirmed on Wednesday that its trading volumes are in line with the company’s expectations.
The FTSE 100 firm, which supplies packaging products to Amazon, Nestle and Unilever, noted “strong box volumes” driven by its differentiated offering, while input costs costs also increased.
Corrugated box volume growth has soared compared to Q2 of DS Smith’s financial year, as the e-commerce and FMCG (Fast-moving consumer goods) operations proved to be strong over the Christmas period and into 2021.
DS Smith’s North European and North American regions have continued its “strong growth with our largest customers and increasing utilisation of our plant in Indiana”.
DS Smith’s share price was up by 0.68% before lunchtime to 405.74p per share.
Since the beginning of the calendar year, DS Smith’s rating within the MSCI ACWI Index has increased from A to AA and the company’s ISS ESG rating had increased, retaining its prime status.
Mike Roberts, chief executive of DS Smith, commented on the results:
“The Group has delivered a robust performance during the period against a challenging macro-economic environment, and I remain immensely grateful and proud of our colleagues for their commitment to keeping our plants safe and operational and continued support from our customers.”
“We are seeing excellent demand from FMCG and e-commerce customers for our sustainable packaging products and solutions and we continue to invest for growth in these areas. COVID-19 is accelerating a number of the structural growth drivers and with our leading position in recycling and fibre-based packaging we are well positioned to capitalise and drive further market share gains.”
“While the economic environment remains uncertain due to Covid-19, we are experiencing good momentum across the business in both Europe and North America. We are confident in delivering results in line with our expectations for the year and showing further good progress and momentum as we move into the next financial year.”