DS Smith wraps up another investor confidence package
Shares climbed for DS Smith this afternoon after the packaging firm said it had posted strong profit growth in the recent quarter.
The company said in its AGM trading update that overall trading was in line with expectations thanks to “pricing momentum and good cost control”.
“We are focusing on ensuring the highest levels of security of supply and customer service and are very pleased with the ongoing support we receive from both our customer and supplier base,” chief exec Miles Roberts said.
He added that whilst the industrial sector continues to show weakness, he said the FMCG business “remains resilient” for DS Smith.
However, the British company said it was “very mindful” of the wider macroeconomic environment, with all input costs, including energy, having increased significantly in recent months.
Box volumes also dipped in the first quarter: a decline the company had anticipated for the period starting 1 May.
The board announced this afternoon that it would be paying a dividend of £0.102 on 1 November, taking the dividend yield to 5.7 per cent for the packaging expert.
Shares in DS Smith climbed nearly three per cent this evening, giving a boost to the stock that has fallen over 30 per cent in the year to date.