Packaging giant DS Smith has said that it has seen good volume growth of box sales in the third quarter of its financial year.
Despite high input costs from increased OCC prices and labour costs, the company was able to pass this onto customers.
In a statement on its Q3 performance, DS Smith noted that “volume growth and continuing packaging price increases have more than offset ongoing input cost increases with overall trading in line with our expectations”.
DS Smith said that it had seen above average growth from its large customers, with Eastern Europe showing fastest growth. There was also strong growth in North America, with increased customer demand driving greater use of its Indiana plant.
On input costs, the company noted that OCC prices remained high, and that labour costs had risen. With high energy prices, these had been offset by improved energy efficiency and long-term price hedging.
DS Smith chief executive Miles Roberts said: “Despite the increasing macro-economic and geo-political uncertainty, the outlook for the year remains unchanged by recent events with the second half of the year continuing to show good momentum. Our geographic footprint, secure supply chain and customer offering focussed on innovative sustainable packaging solutions remains compelling to our resilient customer base of FMCG multi-national companies and has driven continued good volume growth, despite the strong comparatives.
“We have successfully managed the inflationary cost pressures experienced in the market, and this, together with raising packaging prices and growing volumes, is driving the anticipated increased profitability and cash generation.
“The structural growth trends for corrugated packaging are stronger than ever, and we have strategically positioned the business well to capture these drivers, underpinning our confidence in progress for the remainder of the period and into our next financial year.”