- Group celebrates “record” volume growth
- Inflationary pressures likely to linger
As Christmas approaches, the number of cardboard boxes in people’s hallways, porches, and cupboards starts to multiply. Last December, however, packaging specialist DS Smith (SMDS) was hit by lower box volumes and a decline in box and paper prices, while it struggled to keep its plants open and operating. This year things are cheerier for the UK’s largest cardboard manufacturer, though, as its financial performance starts to match its long term growth prospects.
The group’s revenue is now well above pre-pandemic levels and profits in the half-year to October rebounded strongly. Its performance has been bolstered by two factors: volume growth and higher prices. Management reported “record” corrugated box volume growth of 9.4 per cent, with particularly strong profit spikes in North America and Southern Europe.