Yahoo Finance Recovering paper prices help push up sales at DS Smith
DS Smith has been buoyed by a recovery in paper prices and the continued growth of internet shopping, which has increased demand for its packaging products.
The company said that in the year to April 30, it had increased its share of the market by targeting multi-national customers, particularly internet retailers and delivery firms.
It will report an increase in its sales for the year when it releases its full results on June 28.
In an update to the market on Tuesday, the company also said that its purchase of US packaging group Interstate had proven to be better than expected, with the value of the two businesses combined worth $35m (£25.5m), $5m more than previously forecast.
The deal, which was announced in June last year, was DS Smith’s first step into the lucrative US market.
Interstate Resources supplies corrugated packaging primarily to food and drink companies in the US.
“Volume growth in the US has been excellent, and we are very pleased with the positive reaction from local and global customers,” chief executive Miles Roberts said.
DS Smith also said it was pleased with the initial progress made in integrating Ecopack and Ecopaper, the Romanian packaging and paper business it bought for €208m (£183m) in March to expand its European network.
Expanding into new markets has enabled it to make savings in its supply chain, the company said.
DS Smith's shares were up 1.49pc to 530.19p on Tuesday morning.
