DS Smith says conditions remain ‘tough’

London-based paperboard and packaging producer DS Smith reports continued improving corrugated box demand from its customers compared with conditions in mid-2023.

In an early-March trading update, the company says demand for boxes was flat from November 2023-through January of this year compared with the same three-month time frame a year earlier. Regionally, the company says North America and Eastern Europe saw good growth in the quarter, offset by a weaker performance in Northern Europe.

“I am pleased with a continuing resilient performance, despite tough economic conditions,” DS Smith Chief Executive Miles Roberts.

“Our strong customer relationships, quality and service has led to a number of recent fast-moving consumer goods customer contract wins, underpinning our confidence in the outlook for volume growth going forward.

“While markets remain challenging, we continue to focus on providing value-added solutions to our customers and on driving operational efficiency and cost control across the group and view the future with confidence.”

Rumors circulating earlier this year identified DS Smith as a prospective takeover target for fellow paperboard and containerboard producer Mondi, a U.K.-based company with board mills in several parts of the world.

In the meantime, DS Smith says its focus remains on resilient pricing, operational efficiency and tight cost control with anticipated containerboard price increases expected to be reflected in ongoing packaging prices, following the usual lag.

The company  says its outlook for the remainder of the year remains in line with management expectations.