(Reuters) - British cardboard maker and takeover target DS Smith said on Wednesday its like-for-like corrugated box volumes have improved from levels seen in the first half of the financial year, but signalled that market conditions remain challenging.
The company, which operates in more than 30 countries and counts the likes of Amazon (NASDAQ:AMZN) and Unilever (LON:ULVR) as its customers, said overall trading and the outlook for the remainder of the year remained in line with its expectations.
Like-for-like volumes had been flat since the second-half period started on Nov. 1, DS Smith said.
Packaging group Mondi (LON:MNDI) said last month it was in the early stages of considering a possible all-share bid for DS Smith, with Thursday being the deadline for the potential buyer to make a firm offer or walk away.
Packaging companies, which benefited from a boom in goods sales and e-commerce during the pandemic-led lockdowns, have had to grapple with softer demand and weak pricing in the past year as customers de-stocked amid tough market conditions.
DS Smith CEO Miles Roberts said the group had secured a number of recent contract wins from customers in fast-moving consumer goods (FMCG), underpinning the firm's confidence in the outlook for volume growth.
The company said its North America and Eastern Europe markets saw good growth in the third quarter, but that that had been partially offset by a weaker performance in Northern Europe.
Last September DS Smith said it would reduce prices for its packages on signs that customers are re-stocking inventories, particularly in Southern and Eastern Europe and the U.S., although box volumes remained below year-ago levels.