Smith (DS) PLC Pre close trading update (0276V)
October 31 2017 - 3:00AM
UK Regulatory
TIDMSMDS
RNS Number : 0276V
Smith (DS) PLC
31 October 2017
31 October 2017
DS Smith Plc - pre-close half-year trading statement
DS Smith Plc, the leading supplier of recycled packaging for
consumer goods, today issues a pre-close trading update in respect
of the half year ending 31 October 2017.
Trading
Volume growth has been consistently very strong throughout the
period, and across all our regions, driven by our pan-European and
e-commerce customers. As expected, we are continuing to recover the
increase in paper prices with our packaging customers. Trading is
in line with our expectations in the half year with return on sales
for the period broadly consistent with that reported for the full
year to 30 April 2017, and ROACE in the upper end of the target
range.
Building our business
On 25 August 2017 DS Smith completed the acquisition of
Interstate Resources Inc, based on the east coast of US. Trading in
the period under ownership has been strong, in line with our
expectations at the time of acquisition. The integration process is
proceeding very well with excellent levels of enthusiasm and
commitment from Interstate. We therefore remain confident and
excited about the prospects for this business.
On 18 October 2017 we announced the acquisition of EcoPack and
EcoPaper, in Romania, further enhancing our capability in this
fast-growing region and providing support to our "performance
packaging" programme. We expect this acquisition to complete in our
third fiscal quarter.
Miles Roberts, Group Chief Executive, said:
"We are pleased with the consistently strong organic progress of
the business. Customers continue to demand high-quality, innovative
packaging on a multi-national basis and we have the scale and
expertise to serve them. We have also strengthened our business
model further through selective acquisitions, in Europe and US,
driven by customer demand. As such, we view the future with
confidence."
Forthcoming Dates
Results for the half year to 31 October 7 December 2017
2017
Enquiries
DS Smith Plc +44 (0)20 7756 1800
Hugo Fisher, Group Communications Director
Rachel Stevens, Investor Relations Director
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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