LONDON (dpa-AFX) - DS Smith Plc (SMDS.L), a packaging company, Wednesday said its current trading has remained resilient with relatively limited impact from COVID-19 seen to date. Going ahead, the company expects performance for the financial year to be in line with current expectations. The company further said it expects a return on sales for the current financial year to be similar to the first half.
Further, the Board has decided it is prudent to no longer pay the interim dividend due for payment on May 1.
The company said it has been classified by the Governments in all its operating markets as a critical business involved in the supply of packaging to sectors such food and essential products. With this, all its factories are, and have been operational throughout, with further enhanced safety and hygiene standards.
DS Smith said corrugated box volumes have improved on the first half on a like for like basis with main focus on the FMCG customer base, benefiting it during the uncertain times.
On a regional basis, the main impact to date has been in Southern Europe which includes the markets of Italy, France and Spain.
The Northern region including Germany, Benelux, UK and Scandinavia has seen less effect, while there were no meaningful effect in Eastern Europe. Within North American operations, trading has remained relatively robust, consistent with the overall Group.
The company said it has a highly cash generative business model and balance sheet and liquidity profile are strong.
Further, the company is taking steps to ensure the continued financial strength of the business. The Executive Directors will be waiving their rights to any annual bonus in respect of the current year.
Copyright RTT News/dpa-AFX