SEATTLE (Scrap Monster): DS Smith Plc announced Q3 trading update for the period since 1st November, 2021.
The company witnessed continued momentum in H2. Also, high volume growth along with price hikes of packaging have helped to offset ongoing input cost increases. It reported strong box volume growth, mainly driven by FMCG customers. The eastern region within Europe and North America reported fast and steady growth during this period. DS Smith expects volume growth to persist till April 2022.
During this period, input costs, including energy and labour continued to surge. However, the energy impact was limited by improved energy efficiency and long-term hedging programme. It maintained high levels of hedging for energy during FY22, which it expects to continue during next financial year as well.
The company anticipates continued strong free cash flow performance for the full year. The paper supply throughout the year is unlikely to be affected due to long-term supplier relationships which the company has already entered into.
DS Smith has a minority investment in a Ukrainian business, whose production is currently suspended.
The company reiterated its commitment to reduce its Scope 1, 2 and 3 emissions by 46% on an absolute basis by 2030, in comparison with 2019 levels.
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