Shares of DS Smith Plc (LON: SMDS) today surged 6.23% after the international packaging business announced an interim dividend payment based on strong demand for corrugated packaging materials.
In a trading update released before its AGM, which is scheduled for later today, the company noted that demand for its products had improved significantly since the COVID-19 pandemic, which led to the firm recording positive growth in August as compared to August 2019.
DS Smith reported positive growth in its Northern European and North American operations with the FMCG and e-commerce divisions leading the rest.
Miles Roberts, Group chief executive, said: “The underlying drivers of demand for corrugated packaging remain strong and our sustainable packaging solutionsforresilientFMCG and e-commerce customers are more relevant than ever. While the macro-economic outlook remains challenging, we are pleased to see volume growth in August and the reduced OCC costs. Our customer focus, strong cost control, cash generation, and liquidity profile, together with continued performance in line with our expectations, gives us confidence for the future.”
DS Smith share price
DS Smith shares today surged 6.23% to trade at 290p having ended Monday’s session trading at 273p.