(Reuters) -Cardboard maker DS Smith said on Thursday box volume growth had been strong in the first half of the year, supported by the fast-moving consumer goods (FMCG) market and sustained growth in e-commerce supply.
The British company said its overall financial performance was in line with expectations and it witnessed growth in markets including the United States and Southern Europe.
Shares in DS Smith were up 2.3% at 388.4 pence in early trading as investors overlooked the London-listed company’s warning of an increase in costs, mainly driven by higher paper and logistical expenses.
The paper industry, like many others, was hit by shutdowns due to the COVID-19 pandemic which led to supply and price pressures. However, an online shopping boom and DS Smith’s plan to tap growing demand for recyclable boxes have helped the firm.
“Whilst the macro-economic environment remains uncertain, sustainability and the circular economy, together with e-commerce and digital enablement, remain more relevant than ever and are strong structural drivers of growth,” Chief Executive Officer Miles Roberts said.
DS Smith, which supplies packaging products to companies including Amazon, Nestle, and Unilever, said higher costs had not restricted its operations with the company managing deliveries, sometimes by using in-house vehicles.
(Reporting by Sinchita Mitra and Pushkala Aripaka in Bengaluru; Editing by Sherry Jacob-Phillips and Vinay Dwivedi)