Smith (DS) PLC DS Smith Plc - AGM trading statement (0112J)
September 06 2016 - 02:00AM
UK Regulatory
TIDMSMDS
RNS Number : 0112J
Smith (DS) PLC
06 September 2016
6 September 2016
DS Smith Plc - AGM trading statement
DS Smith Plc, the leading supplier of recycled packaging for
consumer goods, today issues a trading update in respect of the
period since 1 May 2016. DS Smith will hold its Annual General
Meeting at 12 noon today.
Trading update
The business has made good progress since the start of the year
and performance has been in line with our expectations. Volume
growth remains good, particularly from pan-European customers who
continue to benefit from our increased scale and coverage, and
reflecting our continued investment in quality, service and
innovation.
Our return on sales and return on average capital employed have
both shown further improvement versus the comparable prior year
period, reflecting the benefit of operating leverage and the
strength of our business model.
Strengthening our business
Since the start of the year, we have continued to invest
organically and acquire businesses in attractive geographies and
market segments, including e-commerce and display, building on the
5 acquisitions completed in 2015/16. The proposed acquisition of
Gopaca, a well invested corrugated packaging business in Portugal,
will expand our position in Iberia and complement the operations we
have in this important region. The transaction, announced in June,
is expected to complete during the first half of our financial
year.
As in-store marketing spend continues to increase, we have
invested significantly in display products and services. In
addition to our organic investment, in June 2016 we acquired Creo,
based in the south east of the UK and we recently completed the
acquisition of Deku-Pack, located in Denmark. Both businesses are
focussed on FMCG, retail and media markets and significantly build
on our capability in this important and growing market segment.
Miles Roberts, Group Chief Executive, said:
"We are pleased with our start to the year and the momentum
within the business, as we continue to grow organically and by
acquisition. Notwithstanding the increased political and economic
uncertainty within Europe, our outlook remains positive. Packaging
has ever increasing relevance in a dynamic retail and consumer
environment and our recent acquisitions, together with the customer
and market opportunities for growth, give us confidence for the
future."
Conference Call
A conference call for analysts and investors, hosted by Miles
Roberts, will take place today, 6 September 2016 at 8.00am London
time. The dial-in number is:
UK / International +44 (0)20 3003 2666
UK Toll Free 0808 109 0700
Password DS Smith
A play-back facility of this call will be available until 13
September 2016. The dial-in number is: +44 (0)20 8196 1998, access
pin 1316621#. A recording and transcript of the call will also be
available through the Investor Relations section of our website:
www.dssmith.com/investors.
Forthcoming Dates
Results for the half year to 31 October 8 December 2016
2016
Enquiries
DS Smith Plc +44 (0)20 7756 1800
Hugo Fisher, Group Communications Director
Rachel Stevens, Investor Relations Director
Bell Pottinger
John Sunnucks +44 (0)20 3772 2549
Ben Woodford +44 (0)20 3772 2566
Notes
-- Return on sales: earnings before interest, tax, amortisation
and exceptional items as a percentage of revenue.
-- Return on average capital employed (ROACE): earnings before
interest, tax, amortisation and exceptional items as a percentage
of the average monthly capital employed over the previous 12 month
period. Average capital employed includes property, plant and
equipment, intangible assets (including goodwill), working capital,
provisions, capital debtors/creditors and assets/liabilities held
for sale.
Cautionary statement
This announcement contains certain forward-looking statements
with respect to the operations, performance and financial condition
of the Group. By their nature, these statements involve uncertainty
since future events and circumstances can cause results and
developments to differ materially from those anticipated. The
forward-looking statements reflect knowledge and information
available at the date of preparation of this announcement and DS
Smith plc undertakes no obligation to update these forward-looking
statements. Nothing in this trading statement should be construed
as a profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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