British cardboard maker DS Smith recently said Tuesday that it was on track to meet its annual expectations, helped by an increase in customer re-stocking demand and strong cost control measures.
"While the economic environment in which we operate remains challenging, we have started the financial year well," Miles Roberts, chief executive officer said in a statement.
Packaging firms, which benefited from an e-commerce boom during the pandemic, have recently been grappling with waning demand, customer d-estocking and falling prices amid higher input costs.
In December 2022, the company raised its interim dividend by 25% and forecast a stronger-than-expected annual performance, after the British cardboard maker posted an increase in its first-half profit due to higher box prices and tight cost controls.
The packaging giant, which supplies packaging to clients including the likes of Amazon and Unilever, reported a 51% jump in adjusted operating profit from continuing operations at £418 million ($509.8 million) for the six months ended 31 October.
The profit surge came despite box volumes declining 3% in the first-half, hit by a weaker-than-expected industrial sector and economic challenges — particularly in the UK and Germany, the company said.
"The macro-economic outlook for the rest of the financial year remains challenging," Roberts, chief executive officer said at the time.
The company, which provides packaging, paper and recycling services, had expected half-year adjusted operating profit of at least £400 million. It had earned £276 million a year.