Trading Statement

Smith (DS) PLC

27 April 2023

 

27 April 2023

DS Smith Plc - Pre-close statement

DS Smith Plc ("DS Smith") today issues a pre-close trading update in respect of the year ending 30 April 2023.

Continued profitable growth

·    Strong growth in profitability and financial performance, continuing the trends we described on 9 March 2023 and in line with our expectations.

·    Expected adjusted EBITA for FY23 in the range of £850 - £860 million.

·    Excellent customer relationships, and our high levels of service, product innovation and sustainability focus have driven resilient packaging prices during the period.

·    Combined with good cost management, this has more than offset the weaker than expected volumes to deliver growth in profitability and delivery in line with our medium-term financial targets.

·    Continued strong free cash flow performance for the full year, leading to an expected reduction in our net debt / EBITDA leverage ratio to approximately 1.3 times as at 30 April 2023 (1.6 times at 30 April 2022).

Miles Roberts, Group Chief Executive, said:

"I am pleased with the excellent performance we have delivered this year, despite the volatile macroeconomic conditions. Our relentless focus on more resilient international FMCG customers to meet their rapidly evolving needs has enabled us to increase our share of their business and, together with ongoing cost management, has driven very strong profit growth.

We remain committed to investing in our business, leveraging our scale, flexible supply chain, supporting our deep customer relationships with innovative fibre-based solutions to lead the transition to a more circular economy, positioning us well as we enter the next financial year."

Enquiries

DS Smith Plc

Investors                                                             [phone]

Hugo Fisher, Group Investor Relations Director

Anjali Kotak, Investor Relations Director

Media

Greg Dawson, Group Corporate Affairs Director

Brunswick                                                           [phone]

Simon Sporborg, Dan Roberts

About DS Smith

DS Smith is a leading provider of sustainable paper-based packaging worldwide which is supported by recycling and papermaking operations. We play a central role in the value chain across sectors including e-commerce, fast moving consumer goods and industrials. Through its purpose of 'Redefining Packaging for a Changing World' and its Now and Next sustainability strategy, DS Smith is committed to leading the transition to the circular economy, while delivering more circular solutions for its customers and wider society - replacing problem plastics, taking carbon out of supply chains and providing innovative recycling solutions. Its bespoke box-to-box in 14 days model, design capabilities and innovation strategy sits at the heart of this response. DS Smith operates in 34 countries employing around 30,000 people and is a Strategic Partner of the Ellen MacArthur Foundation.

Cautionary statement

This announcement contains certain forward-looking statements with respect to the operations, performance and financial condition of the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this announcement and DS Smith plc undertakes no obligation to update these forward-looking statements.

 

END