DS Smith tackles rising costs

20th Apr 2011 09:45

Recycled packaging group DS Smith says that the year ending 30 April is progressing 'in line' with good improvements in return on sales and "significant" earnings growth, as the group has been able to tackle rising input costs."While we have seen the anticipated further input cost increases come through in the final quarter of the year, these costs are being recovered successfully," the statement said.The corrugated packaging business has seen an underlying volume growth of 8% in the year to date. Spicers, its office products wholesaling division, is expected to report improved profits due to growth in continental Europe and "decisive cost control actions in the UK.""DS Smith has strong foundations, a disciplined approach to capital allocation and cost control with attractive growth opportunities within the UK, France and Central and Eastern Europe as corrugated packaging outperforms other materials on ease of recycling," the group said.---bc