Smith (DS) PLC Q3 Trading Statement (8976G)
07 March 2018 - 6:00PM
UK Regulatory
TIDMSMDS
RNS Number : 8976G
Smith (DS) PLC
07 March 2018
7 March 2018
DS Smith Plc - Q3 trading statement
DS Smith Plc ("DS Smith"), today issues a trading update in
respect of the period since 1 November 2017.
Trading update
We are pleased with the good progress of the business in the
period, reflecting the increasing relevance of sustainable
packaging and our compelling customer offering.
Box volume growth has remained strong, continuing the positive
trend seen in the first half of the year, reflecting on-going good
progress with our multi-national and e-commerce customers. Growth
was delivered across all our geographies, with our expertise in
e-commerce, combined with a strong Christmas trading period for
online retail sales, contributing to our continued market share
gains.
Integration of our North America business is going very well.
The business continues to perform ahead of our initial
expectations, with packaging volume growth significantly ahead of
the Group average rate and improved paper productivity.
The recovery of recent increases in paper prices is progressing
well, as expected. This, together with operational leverage coming
from the strong top-line growth, means that return on sales is
expected to increase in this H2 period as compared to H1, and the
full year return on sales is expected to be in line with that for
the prior year, with trading overall in line with our
expectations.
Completion of acquisition of Ecopack and Ecopaper in Romania
DS Smith completed the acquisition of Ecopack and Ecopaper, a
leading integrated packaging and paper group in Romania, on 6 March
2018. The acquisition will significantly enhance our capacity to
serve customers in this high growth region as well as supporting
our wider substantial Eastern European presence. The acquisition,
for an enterprise value of c. EUR208 million, is expected to be
earnings enhancing immediately and is consistent with the Group's
medium term financial targets.
Miles Roberts, Group Chief Executive, said:
"I am very pleased with how our strategy is delivering for
customers and producing strong results. We continue to gain market
share by delivering packaging that adds value for our customers, as
they look to improve the efficiency of their own operations. The
excellent reaction from US customers reflects the differentiated
offer we bring, including our expertise in retail ready packaging
and e-commerce. At the same time, the benefit of a global supply
platform for paper and fibre is being seen in the improved
operational efficiency of our US assets and greater co-ordination
across the Group.
We are excited by the structural drivers supporting the growth
of sustainable packaging and the opportunities for DS Smith. Our
outlook therefore is positive and we remain confident in the
future."
Conference Call
A conference call for analysts and investors, hosted by Miles
Roberts, will take place today, 7 March 2018 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 14
March 2018. The dial-in number is: +44 (0)20 8196 1998, access pin
1031814# . A recording and transcript of the call will also be
available through the Investor Relations section of our website:
www.dssmith.com/investors.
Technical note
6,492,411 vendor consideration shares in respect to the
acquisition of Ecopack and Ecopaper, are expected to be admitted to
trading on the London Stock Exchange tomorrow.
Forthcoming Dates
Results for the full year to 30 April 28 June 2018
2018
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
TSTLLFVDVSIRIIT
(END) Dow Jones Newswires
March 07, 2018 02:00 ET (07:00 GMT)
Smith (ds) (LSE:SMDS)
Historical Stock Chart
From May 2024 to Jun 2024
Smith (ds) (LSE:SMDS)
Historical Stock Chart
From Jun 2023 to Jun 2024