DS Smith, the leading packaging company, has announced that its performance in the first half of fiscal 2024 has been in line with expectations, despite the challenging macroeconomic environment. The company has witnessed an improvement in corrugated box volumes during the second quarter, compared to the first quarter, though still below the prior-year level.
Resilient Pricing and Strong Customer Retention
DS Smith’s pricing has remained more resilient than anticipated, thanks in part to strong customer retention. Additionally, the company’s efforts to reduce costs and manage input costs have helped offset the impact of falling prices. As a result, the FTSE 100-listed firm has been able to navigate these challenges effectively.
Optimistic Outlook for the Second Half
Despite the ongoing weak macroeconomic environment, Chief Executive Miles Roberts expressed confidence in the improving volume performance. He expects the second half of fiscal 2024 to show even stronger volume performance than the first half. Overall, DS Smith is well-positioned for success throughout the remainder of the fiscal year.
Promising Financial Projections
DS Smith anticipates closing the first half of the year with adjusted earnings before interest, taxes, and amortization (EBITA) around £360 million ($436.1 million).