DS Smith issues pre-close trading update, meeting expectations with robust performance despite weak macro-economic conditions; company continues investment in business with focus on new packaging solutions at its latest UK-based innovation hub

October 27, 2023 (press release) –

DS Smith Plc (“DS Smith”) today issues a pre-close trading update in respect of the half year ending 31 October 2023.

Trading continues in line with expectations

• As expected, like for like corrugated box volume performance has improved quarter on quarter, albeit remaining below the prior year.
• Pricing has remained more resilient than expected, reflecting our strong customer relationships, ongoing innovation and high service levels. Reduced input costs and cost mitigation efforts have broadly offset the price declines.
• We continue to invest in our business, including the recently opened group-wide innovation hub, R8. This UK-based facility allows us, our customers, and partners to accelerate the research and development of new packaging solutions.
• Overall trading remains in line with expectations, with adjusted EBITA for the 6 months to 31 October 2023 expected to be approximately £360m.

Overall, I am pleased with our robust performance during the first half. Despite an ongoing weak macro-economic environment, we expect volume performance to improve, with second half volume performance anticipated to be better than the first half. We continue to invest behind our customers, focusing on providing them with value added solutions and this, together with our strong operational performance, means we are positioned well for the remainder of FY24.

— Miles Roberts, Group Chief Executive

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