A pre-close trading update for the year ending 30 April 2017 said the corrugated giant expected to deliver on all five medium term financial targets, and reiterated that growth was built on the strength of relationships with pan-European and e-commerce customers.
It added that the integration and performance of recently acquired businesses is progressing well, referring to expansion in Iberia, point of sale capability in Europe, and in flexible plastic packaging in the US.
The recent mergers and acquisitions were Gopaca in Portugal, Creo in the UK, Deku-Pack in Portugal, P&I in Portugal, and Parish Manufacturing in USA.
Jefferies investment bank said the DS Smith update was reassuring, and the volume growth was boosted by the recent Amazon UK contract win.
Justin Jordan, equity analyst at Jefferies, said the bank expects full year 2017 estimates at 20% growth Y/Y to £456m EBIT.
Miles Roberts, DS Smith group chief executive, said: “We are pleased with the performance in the year, despite challenging economic conditions and have seen DS Smith grow again, both organically and through acquisitions. Our success is underpinned by our commitment to packaging that is innovative and adds value to our customers, throughout their global supply chains and also by a focus on our own global supply chain efficiency. This approach, together with momentum in our business and opportunities to further strengthen our customer offering, gives us confidence in the future.”
Source: News – Packaging News