LONDON (ShareCast) - (ShareCast News) - Recycled packaging supplier DS Smith updated the market on its trading since 1 May on Tuesday, as investors gathered for the company's annual general meeting, saying it had been an "encouraging" start to the financial year with trading in line with expectations.
The FTSE 250 firm said it was "delighted" with the continuing strengthening of relationships and progress with its customers, as reflected in the "strong demand" for its enhanced packaging solutions across the business with the rate of like for like volume growth being well ahead of the comparative period last year.

Its board said progress with its pan-European and e-commerce customers was particularly strong again, and the recovery of recent increases in paper prices was progressing as expected, with the impact of the short term recovery period continuing to be mitigated by operational leverage coming from strong top-line growth.

DS Smith completed the acquisition of Interstate on 25 August, its board confirmed.

Trading at Interstate in the calendar year to date was said to be "fully in line" with the board's expectations at the time of the acquisition, which supported its confidence in that business.

Integration work by Smith's experienced team was said to be well underway, and a further update would be provided at the time of its half-year results in December.

"We are very pleased with the reception by our customers to our continuing development of market leading packaging solutions," said group chief executive Miles Roberts.

"These solutions are increasingly valued as they help our customers to improve their own sales, reduce total costs and mitigate risk."

Roberts said that had resulted in the "strong volume momentum" seen last year accelerating into the current year to date.

"The response from the employees and customers to our acquisition in the US has also been very pleasing.

"Our outlook therefore is positive and we have confidence in the future."

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