Smith (DS) PLC Q1 AGM Trading Statement (6395Z)
September 04 2018 - 1:00AM
UK Regulatory
TIDMSMDS
RNS Number : 6395Z
Smith (DS) PLC
04 September 2018
4 September 2018
DS Smith Plc - Q1 AGM trading statement
DS Smith Plc ("DS Smith"), today issues a trading update in
respect of the period since 1 May 2018. DS Smith will hold its
Annual General Meeting at 12 noon today.
Trading update
We continue to be excited by our prospects. Our focus on
sustainable packaging in resilient and growing sectors, including
FMCG and e-commerce, is consistently driving market share gains. We
have seen good like for like volume growth in the year to date,
with progress in all geographic regions.
Recovery of input cost increases from earlier in the calendar
year is in line with our expectations, with the consequent positive
margin impact. Cashflow has also remained a focus in the period as
we maintain a disciplined approach to working capital and capex.
Trading remains in line with our expectations.
Interstate Resources, our North America Paper and Packaging
division, continues to perform very strongly. Integration continues
to go well and we have added additional capacity and further
enhanced our customer offering via the acquisition of Corrugated
Container Corp, which completed on 1 June 2018. We are delighted
with the customer reaction, with a number of major customers
seeking to partner with DS Smith for their packaging solutions in
both Europe and the US.
Update on Europac
On 4 June 2018 we announced the proposed acquisition of Papeles
y Cartones de Europa, S.A., ("Europac"), for EUR16.80 per share and
an implied enterprise value of EUR1,904m. The required regulatory
approval process is progressing as expected and we anticipate
completion in calendar Q4 2018, as previously indicated.
Preparation for integration is continuing at pace and we look
forward to welcoming Europac to the DS Smith group.
Strategic review of Plastics division
In June 2018 we announced a strategic review of our Plastics
division. Progress has been positive and we will update further as
appropriate.
Miles Roberts, Group Chief Executive, said:
"I am pleased with our momentum in the year to date, in a period
when we also announced a significant acquisition and associated
equity fundraising to expand our position in the important Iberia
region. The corrugated packaging industry continues to demonstrate
excellent growth prospects, driven by changing shopping habits,
e-commerce, and the ever-increasing relevance of sustainability. DS
Smith is in a strong position, as a market leader, to capitalise on
these opportunities, and the Board looks to the future with
confidence. "
Conference Call
A conference call for analysts and investors, hosted by Miles
Roberts, will take place today, 4 September 2018 at 8.00am London
time. The dial-in number is:
UK/International +44 (0)20 3003 2701
UK Toll Free 0808 109 0701
Password DS Smith
A play-back facility of this call will be available until 11
September 2018. The dial-in number is: +44 (0)20 8196 1998, access
pin 8019348# . A recording and transcript of the call will also be
available through the Investor Relations section of our website:
www.dssmith.com/investors.
Forthcoming Dates
Results for the half year to 31 October 2018 6 December 2018
Enquiries
DS Smith Plc
Investors +44 (0)20 7756 1800
Hugo Fisher, Group Communications Director
Rachel Stevens, Investor Relations Director
Media
Greg Dawson, Group Corporate Affairs Director
Brunswick +44 (0)20 7404 5959
Simon Sporborg
Dan Roberts
Christina Clark
Cautionary statement
This announcement contains certain forward-looking statements
with respect to the operations, performance and financial condition
of the Group. By their nature, these statements involve uncertainty
since future events and circumstances can cause results and
developments to differ materially from those anticipated. The
forward-looking statements reflect knowledge and information
available at the date of preparation of this announcement and DS
Smith plc undertakes no obligation to update these forward-looking
statements. Nothing in this trading statement should be construed
as a profit forecast.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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