On the face of it, DS Smith should be emerging as a clear winner from the pandemic (Miles Costello writes). Not only have lockdowns dramatically increased demand for its cardboard boxes and cartons, but Covid-19 also looks to have accelerated the overall long-term trend for shoppers and industry to move online.
However, as shareholders found in DS Smith’s pre-close trading update yesterday, there are nuances. Demand for boxes has increased, yes, but so, too, have paper prices in Europe and the United States, pushing up costs for those that buy in raw materials.
The shares dipped modestly after publication of the largely upbeat report and DS Smith’s stock remains depressed, having fallen by just over 23 per cent since the beginning of the year. For
