British cardboard maker DS Smith on Monday forecast overall annual performance to be ahead of its expectations, helped by strong revenue growth and cost-cuts.
The London-based company, which provides packaging, paper and recycling services, has seen its volumes fall after a fruitful 2022 fiscal year where it tapped growing demand for recyclable boxes and benefited from a boom in online shopping.
On Monday, the company said year-to-date trading continued well, driven by pricing momentum and good cost control, although like-for-like corrugated box volumes fell slightly.
"While the macro-economic outlook remains uncertain, the performance this year is ahead of our previous expectations and we look forward to the remainder of the year with confidence," said Miles Roberts, chief executive officer in a statement.
DS Smith also said it expects adjusted operating profit of at least £400 million ($443 million) for the half year to 31 Oct0ber.
It had earned £276 million a year earlier.
On the 14 September, DS Smith announced that it expects a newly opened plant in northern Italy to help it reach its full-year growth targets as well as cut down on emissions and soften the impact of soaring energy prices.
Speaking at the new facility in Castelfranco Emilia, near the city of Modena, Miles Roberts, chief executive called the plant "a long-term asset" that would help the company navigate a "challenging" short-term economic environment.
However, Roberts said the company was preparing for the risk of rationing of energy over the coming winter as supplies from Russia are squeezed as a result of the war in Ukraine.