Proactive Investors - DS Smith PLC (LON:SMDS) sees “clear signs” that companies are eating into their stockpiles of cardboard boxes as sales volumes have improved since the start of May.
However, the FTSE 100 company said like-for-like volumes remained below where they were a year ago, with end markets continuing to be “challenging”.
Overall, it said trading is in line with expectations, having said in June’s final results that box volumes were “lower than normal”.
Today’s update, published on the day of the company’s annual shareholder meeting, revealed that pricing remains “resilient” and that trading has been helped by “strong” cost control measures.
Chief executive Miles Roberts said: “While the economic environment in which we operate remains challenging we have started the financial year well.
“We continue to work closely with our customers, meeting their evolving needs and are pleased with their positive feedback and the progress we are making. This, together with our ongoing focus on cost and operational efficiencies and our robust and flexible supply chain, positions us well for the remainder of FY24 and beyond."
The shares opened down 1.2% at 305.8p in early trading on Tuesday.