British packaging company DS Smith has reported strong growth in profits and returns during the first quarter (Q1) of the fiscal year 2023 (FY23), which started on 1 May.

The company’s corrugated box volumes dropped slightly on a like-for-like (LFL) basis against the 13% growth in the same period a year earlier.

In its trading update, DS Smith said that it expects its corrugated box volumes to grow by at least 2% for the full year.

In addition, all the company’s input costs, including that of energy, increased significantly but were mitigated by its efficiency initiatives and long-term hedging programme.

DS Smith said that more than 90% of its natural gas costs hedged for FY23 are being recovered through increased packaging pricing.

The company has kept its guidance unchanged for the full year and expects a ‘significant improvement’ in performance.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

DS Smith group chief executive Miles Roberts said: “We have started the financial year very strongly, despite the current macroeconomic conditions.

“Whilst the industrial sector is showing some weakness, our fast-moving consumer goods (FMCG) business remains resilient.

“The increased profitability and cash generation is being driven by improving efficiency and cost increase mitigation as well as successfully continuing to raise packaging prices.

“Overall returns on capital remain within our medium-term target.

“As we enter the second quarter, we are very mindful of the challenging economic environment in which we operate and the impact it has on both our customers and colleagues. However, our operating plans and progress to date continue to give us confidence in our outlook for FY23.”

In a separate development, DS Smith has appointed Keith Tornes as managing director for paper, forestry and recycling for its North American business.

Tornes previously served as segment manufacturing manager for protective solutions at Sonoco.