Shares of DS Smith PLC (LON: SMDS) gained over 3% today after the packaging firm said it has witnessed “significant improvement” in demand in the last quarter.
Corrugated box volumes fell 1.5% in the six months to October 31 compared to the same period a year ago. Despite improving volumes, the firm expects a profit for the second half of its fiscal year to come lower than last year.
“I am pleased with the performance of the group in the first half of the year, in what remains a difficult and uncertain economic environment caused by Covid. We continue to be excited by the underlying drivers of demand for our sustainable corrugated packaging and our leading offerings for FMCG and e-commerce customers, together with our focus on cost efficiency and cash generation, give us confidence in the business going forward,” said Chief Executive Miles Roberts.
DS Smith, Europe's largest recycler of paper and cardboard, reiterated its intention to pay an interim dividend. The packaging titan is scheduled to report its interim results on December 10.
DS Smith share price rose over 3% to trade above 300p for the first time in two weeks.
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