Smith (DS) PLC AGM trading update (2814Y)
08 September 2020 - 4:00PM
UK Regulatory
TIDMSMDS
RNS Number : 2814Y
Smith (DS) PLC
08 September 2020
8 September 2020
DS Smith Plc AGM trading update
DS Smith Plc ("DS Smith"), today issues a trading update in
respect of the period since 1 May 2020, accompanying today's Annual
General Meeting.
Trading update
The business has progressed well in the period with performance
continuing in line with our expectations, despite the
macro-economic challenges that resulted from Covid-19.
Our like for like corrugated box volume performance has improved
over the period since the initial impact of Covid-19 and in August
we have seen a return to positive growth vs August 2019. Our
leading FMCG and e-commerce business has grown through the period
demonstrating a consistently strong performance with our
multinational customers, more than offsetting the continuing
challenging conditions in a number of industrial categories. Our
Northern European region has continued to perform well with
pleasing recovery momentum in Southern and Eastern Europe since
May.
We are encouraged by the progress in North America, in
particular in attracting new customers, including multinationals,
to our Indiana plant. This gives added confidence in an improving
North American divisional performance for the year.
Our supply chains have remained robust which, together with the
continued exceptional support of all our colleagues, has allowed
all our plants to remain operational, providing security of supply
and record service and product quality levels for our customers.
Our strong commercial offering continues to help mitigate the
ongoing lower pricing environment. As expected, the impact of
lockdowns on recycling infrastructure and the associated short-term
impact on OCC pricing has reduced to more normal levels and we
continue to see further opportunities in terms of efficiencies
within our cost base . Given the performance over the last quarter,
and our improved clarity in the outlook, combined with a strong
financial position the Board intends to declare an interim dividend
for the half year to 31 October 2020.
Miles Roberts, Group Chief Executive, said:
" The underlying drivers of demand for corrugated packaging
remain strong and our sustainable packaging solutions for resilient
FMCG and e-commerce customers are more relevant than ever. While
the macro-economic outlook remains challenging, we are pleased to
see volume growth in August and the reduced OCC costs. Our customer
focus, strong cost control, cash generation, and liquidity profile,
together with continued performance in line with our expectations,
gives us confidence for the future."
A copy of this announcement will be made available at
www.dssmith.com . This announcement contains inside information as
stipulated under the Market Abuse Regulations (EU) No. 596/2014.
The person responsible for this announcement on behalf of DS Smith
Plc is Iain Simm, Group General Counsel and Company Secretary.
Conference Call
A conference call for analysts and investors, hosted by Miles
Roberts and Adrian Marsh, will take place today, 8 September 2020
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 15
September 2020. The dial-in number is: +44 (0)20 8196 1998, access
pin 9265562 # . A recording and transcript of the call will also be
available through the Investor Relations section of our website:
www.dssmith.com/investors/results-and-presentations .
Forthcoming Dates
Results for the half year to 31 October 2020 10 December 2020
Enquiries
DS Smith Plc
Investors +44 (0)20 7756 1800
Hugo Fisher, Group Investor Relations Director
Rachel Stevens, Investor Relations Director
Media
Greg Dawson, Group Corporate Affairs Director
Brunswick +44 (0)20 7404 5959
Simon Sporborg
Dan Roberts
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.
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END
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