DS Smith says market conditions positive
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Shares in international packaging specialist DS Smith (LON:SMDS) were up by 1.9% over yesterday’s close before normalising over the course of the morning after the company said that it was seeing good like-for-like volume growth through the year to date. Additionally, the recovery of input cost increases from earlier in the calendar year was proceeding in line with management expectations.
The regulatory approval process for the purchase of Europac was proceeding as planned and the deal is expected to complete during the 4th quarter of 2018.
Group chief Executive Miles Roberts commented: “I am pleased with our momentum in the year to date, in a period when we also announced a significant acquisition and associated equity fundraising to expand our position in the important Iberia region. The corrugated packaging industry continues to demonstrate excellent growth prospects, driven by changing shopping habits, e-commerce, and the ever-increasing relevance of sustainability. DS Smith is in a strong position, as a market leader, to capitalise on these opportunities, and the Board looks to the future with confidence.”
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