DS Smith (LSE: SMDS), a leading provider of sustainable packaging solutions, announced on Thursday that it has maintained stability in its first-half performance despite facing challenges in the ‘ongoing weak macro-economic environment’.
Shares in the company saw a positive uptick, climbing 2.4% to 275.55 pence in early morning trading, marking DS Smith as the best-performing company in the FTSE 100 index.
The company attributed its resilience to pricing strategies that proved ‘more resilient than expected’. While facing declines in pricing, DS Smith managed to counterbalance the impact by leveraging easing input costs and implementing stringent cost-cutting measures.
For the first half ending October 31, DS Smith anticipates reporting earnings before interest, tax, and amortisation of £360 million, reflecting a 14% decrease from the £418 million recorded in the previous year. Despite this, Chief Executive Miles Roberts expressed satisfaction with the company’s robust performance during the challenging economic climate.
“Overall, I am pleased with our robust performance during the first half. Despite an ongoing weak macro-economic environment, we expect volume performance to improve, with second half volume performance anticipated to be better than the first half,” stated Roberts.
He further highlighted DS Smith’s dedication to customer-centric strategies and investments. ‘We continue to invest behind our customers, focusing on providing them with value-added solutions. This, together with our strong operational performance, means we are positioned well for the remainder of FY24.’
