DS Smith says trading on track after it boosts sales

PACKAGING supplier DS Smith said trading over the summer was encouraging, helped by an uptick in fast moving consumer goods (FMCG).

The FTSE 250 firm said it was confident for the rest of the year, and said it was ahead of the market for growth in the FMCG sector.

“Our aim is to produce a more focussed business with less cyclicality,” said chief executive Miles Roberts in a call with analysts yesterday. “We are looking at five to six per cent like-for-like growth in our main markets, and more in developing markets such as Poland.”

The company acquired French packaging firm Otor for about €247m (£205m) in July and said it expected Otor to add to both earnings and margins in the first full financial year of ownership in 2011.

The firm announced a 227 per cent rise in annual profits to £55m in June, on sales of £2.1bn.

Shares closed flat at £147.7p.