In a trading update released this morning (10 October), the London-headquartered packaging giant said its trading continues to be very good, and consistent with the trends described in its AGM trading statement last month.

It is now expecting adjusted operating profit for the half year to 31 October 2022 of at least £400m, with strong cash generation and progress against all its key financial ratios.

Revenue growth has been very strong, the business said, which together with effective cost mitigation has driven the improved profitability, despite slightly lower like-for-like corrugated box volumes.

Miles Roberts, DS Smith group chief executive, said: “I am very pleased with the performance in the year to date and the momentum in our business. We remain focused on delivering for our customers and managing our costs in an inflationary environment.

“While the macro-economic outlook remains uncertain, performance this year is ahead of our previous expectations and we look forward to the remainder of the year with confidence.”

Separately, the business has appointed Michael Orye as the new managing director of its Recycling division in Europe, and Rogier Gerritsen as managing director of its Paper division in Europe.

Orye has extensive experience from the packaging industry and a track record in promoting a circular way of working, joining DS Smith from food packaging business Faerch, where he served as the CEO for Central Europe and Recycling.

Gerritsen, meanwhile, who previously held the recycling role, joined DS Smith in 2012 when the company acquired SCA Packaging and has since held senior roles in both the Paper and Recycling divisions. He will now be responsible for the company’s 13 paper mills in Europe.

Both Orye and Gerritsen will report to Niels Flierman, managing director of Paper, Recycling and Capex.

DS Smith’s share price had jumped by nearly 12% at the time of writing just after midday to 270.45p (52-week high: 404.34p, low: 238.1p).