LONDON (dpa-AFX) - DS Smith Plc. (SMDS.L) reported that corrugated box volumes in and throughout the second-quarter have returned to growth compared to the comparable prior year period. It expects volumes for the first-half of year to be about 1.5% lower than the prior year.
In its pre-close trading update in respect of the half year ending 31 October 2020, the company said that the market trends and its performance have continued to improve since its trading update of 8 September 2020 with its expectations for overall financial performance unchanged.
The company continues to see the anticipated year on year modest price deflation in box pricing. The second-quarter increases in packaging demand are being reflected in upward pressure on paper pricing in Europe and the US, providing a support for corrugated box pricing.
The company expects profit for the half year will be lower than the comparable prior year period due to Covid. But the company has seen significant improvement in the second-quarter compared to the first-quarter, on both sides of the Atlantic, reflecting the benefit of improving packaging volumes and reduced OCC pricing.
The company said it remains its intention to declare a dividend for the half year to 31 October 2020.
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