UK-based mill group DS Smith has said that it expects increased profit for its half year to 31 October 2022, despite lower cardboard box volumes.
The company said in a statement that trading continues to be very good and consistent and that it now expects adjusted operating profit for the half year to be in the region of £400 million. This compares to £276 million in the same period last year.
It also means that its performance for the full financial year is likely to be above its previous expectations.
Despite lower like-for-like corrugated box volumes, it noted that revenue growth has been very strong. Along with cost mitigation measures, this has driven improved profitability.
DS Smith chief executive Miles Roberts said: “I am very pleased with the performance in the year to date and the momentum in our business.
“We remain focused on delivering for our customers and managing our costs in an inflationary environment.
“While the macro-economic outlook remains uncertain, performance this year is ahead of our previous expectations and we look forward to the remainder of the year with confidence.”