DS Smith calls 2023 climate ‘challenging‘

United Kingdom-based paperboard and packaging producer DS Smith Plc has issued a trading update covering its activities since May 1. That date marked the start of the company’s 2024 fiscal year.

“Overall trading is in line with our expectations, driven by continued resilient pricing and strong cost control measures, despite end markets remaining challenging," DS Smith says of its sales and production activities the past three months.

The firm says its “like-for-like performance” this summer has seen corrugated box volumes having improved since the start of its new fiscal year with clear signs of reduction in customer destocking, while remaining below the prior year comparative.

“While the economic environment in which we operate remains challenging we have started the financial year well," DS Smith Chief Executive Miles Roberts says. "We continue to work closely with our customers, meeting their evolving needs and are pleased with their positive feedback and the progress we are making.

“This, together with our ongoing focus on cost and operational efficiencies and our robust and flexible supply chain, positions us well for the remainder of fiscal year 2024 and beyond.”

In its update, the paper and board producer also mentions $1.89 billion worth of green bonds issued by it in July, which the firm says “has significantly extended our debt maturity profile at attractive terms.”