The UK-based corrugated and paper packaging company said the first quarter of the year had been “encouraging” as it posted its latest report on business since the beginning of May.
DS Smith confirmed that the acquisition of Otor for €247m was completed “earlier than planned” on 1 September. The UK Office of Fair Trading gave its approval for the deal on 12 August. The company said it expected the French firm to be accretive to earnings and margins with the first financial year. It said it was already working on achieving annual cost savings of €9.3m, which were expected to be made during the second full financial year of ownership, as a result of the merger.
“Combining Otor’s successful, well-established, FMCG focused corrugated packaging business with our existing French operations will create a platform for further revenue opportunities across the wider European market,” said the company.
Positive European demand
DS Smith said its paper and corrugated division had seen improved volumes thanks to “positive demand trends in the UK and Europe”.
Good volume growth and cost control meant its plastics performance at the start of the year was also “encouraging”. The anticipated recovery in paper prices had also seen profits rise.
In its outlook for the rest of the year, the firm said performance was in line with expectations.
Symphony results
UK Oxo-biodegradable plastics company Symphony Environmental Technologies announced its profit before tax rose by five per to ₤0.42m and that revenue increased six per cent to ₤3.9m in its interim financial statement.
The company said it had increased its number of product distributors to 57 to from 48.