DS Smith reaps rewards of online shopping boom, but sees costs climb
Packaging giant DS Smith has reaped the rewards of Europe’s pandemic-induced ecommerce boom, with its box volumes swelling past pre-pandemic levels.
In its latest trading update, the European group said growth in box volumes had been recorded both in 2019 and in 2020 in the months to 1 May, driven by the demand in ecommerce and consumer sectors.
However, the group has been hit by climbing costs of energy and transportation, but urged that given the strong demand for packaging, it stands in good stead to recover the “notable increases”.
“The long-term structural growth drivers of e-commerce and sustainability have been accelerated by the effects of Covid,” CEO Miles Roberts said.
“Accordingly, while the macroeconomic environment remains uncertain, we remain confident about the prospects for the business in this financial year and beyond.”
The firm added that ecommerce continues to be a top priority and that it is continuing to inject investments into technology solutions, as well as its two fresh packaging manufacturing sites in Italy and Poland.
The new sites are expected to begin operations in the final quarter of this year.
It comes as Roberts seeks to tackle the “full-blown recycling crisis” that looms over the UK, after parcel volumes hit a record high of 3bn last year.
DS Smith has recently put new ‘Circular Design Metrics’ into practice, which systematically measure the environmental impact and efficiency of packaging within supply chains, the packaging giant said in a statement.
The group’s boss, aware of the environmental weight of DS Smith’s business model, has called for a “simpler, standardised” recycling system to make it easier for the public – as well as large businesses – to turn their waste into something usable, such as new packaging or cash.