DS Smith warns of rising packaging prices due to COVID-19 as online shopping explodes
The DS Smith logo is pictured inside the DS Smith Packaging Atlantique cardboard box manufacturing company in La Chevrolière, near Nantes, France on April 25, 2019. REUTERS / Stephane Mahe
Britain’s DS Smith (SMDS.L) on Thursday warned of rising packaging prices as the boom in online shopping during the pandemic led to increased demand for boxes, coupled with a shortage of raw materials and to higher paper prices.
DS Smith, which supplies packaging products to companies such as Amazon (AMZN.O), Nestlé (NESN.S) and Unilever (ULVR.L), has announced plans to invest in new manufacturing plants of boxes in Italy and Poland, and to expand its capacity in Germany. .
The COVID-19 crisis has accelerated the growth of e-commerce and the demand for sustainable products, as consumers stuck at home turn to the internet to shop.
FTSE-100 also said it plans to release full year results in line with expectations, as the boom in online shopping has helped to increase sales volumes and improve performance in the United States.
“As a purely fiber-based business, we are benefiting from accelerating consumer trends in online shopping and the drive to live more environmentally friendly lives,†said CEO Miles Roberts in a statement.
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