DS Smith looking for substantial growth

Recycled packing company DS Smith said it was trading in line with market expectations and expected substantial year-on-year growth in earnings per share.

Smith said integration work was proceeding slightly ahead of plan at its SCA Packaging, which it bought at the end of June.

It added that the €1.58bn deal had transformed its position in the European market for recycled packaging.

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The firm reported good sales of corrugated box, slightly ahead of its GDP+1% target, with particularly encouraging volume growth continuing in Continental Europe.

"This has led to our operating profit margin for the group continuing to improve despite the continued difficult market for our moderately sized paper business," its management statement said.

Chief Executive Miles Roberts said SCA Packaging was very complementary to DS Smith's strengths and created a significantly enlarged geographic footprint.

"Together, we are now better positioned to meet the needs of our pan-European customers and to deliver substantial value for our customers, shareholders and employees," he said.