Input costs a concern for DS Smith

10th Mar 2011 07:56

DS Smith, which supplies recycled packaging for consumer goods, said trading has been good since 31 October, though rising input costs are a concern. The packaging business has seen revenue growth of 27% in the UK and 23% in Europe. "This has been driven both by volume growth and consistent recovery of rising input costs, albeit with the usual delay," the company said.In Office Products Wholesaling, revenue has been flat year-on-year "with good performance in its European markets, in particular France and Germany, and more difficult trading conditions in the UK." Cost controls have been helping drive profits higher. DS Smith expects the year to finish in line with expectations with "significant" earnings per share growth."Notwithstanding further input cost increases which are expected in the fourth quarter of the year, we look forward to the remainder of the year with confidence," the company said.