DS Smith sinks on sales news

The price of shares in packaging specialist DS Smith (LON:SMDS) has dropped 2.81% to 332p (as of 12:50 BST) as management said that they were confident in the resilience of the firm’s model despite subdued volumes in export oriented markets including Germany. The disposal of the remedy division has been completed and it is expected that the sale of the plastics arm will be completed by the end of the year.

CEO Miles Roberts commented: “The underlying drivers of demand for sustainable corrugated packaging remain strong and our leading offerings for highly resilient FMCG and e-commerce customers give us confidence of volume and market share growth.

“While volatility in the macro-economic environment and input costs remains, our focus on pricing discipline, margin progression, enhanced cost and efficiency improvements, and cash generation, support our expectation of further good progress in the year“.