All financial information in British pounds.

• Overcoming headwinds: U.K.-based paper and packaging company DS Smith reported a smaller profit dip than market expectations for the fiscal year that ended April 30, amid a “challenging environment” riddled with headwinds like inflation and lower box demand. Northern Europe had the most challenging demand environment, while the U.S. showed the highest box volume growth of any region. “Whilst the market was difficult, we have exited the year on an improving volume trend, and we're very pleased with that,” said CEO Miles Roberts on Thursday’s earnings call. The positive trends in packaging volumes from the second half of last year have continued into the current financial year, he said. 
• International Paper’s acquisition: The deal for International Paper to acquire DS Smith, announced in April, “remains fully on track” for a Q4 completion, Roberts said. Shareholder votes will occur after the prospectus is filed, which is expected to be in late August or September, although no exact timeline has been announced. In May, news surfaced of Brazilian company Suzano making a play for International Paper — a transaction that would require IP abandoning its DS Smith deal — but IP says it is not engaged with Suzano.
• Plastic substitutions: DS Smith is investing heavily in helping brands switch from plastic to fiber, executives said on the call. The company announced in May that it had replaced more than 1.2 billion pieces of plastic packaging with fiber options, 16 months ahead of the company’s 2025 target of replacing 1 billion units. Some replacements include fruit punnets, beverage carriers and shrink wrap around beverage bottles. Roberts said that part of the second-half fiscal year improvement is due to customers’ accelerating movement toward substrate switches. “It's not just better for the environment. It's having a very positive effect on the consumer reaction,” he said. Emerging regulations mandating sustainable packaging changes are also driving substrate switches, especially in Europe.
• Outlook: Executives expect the coming months to show “the converse from the destocking, with the higher demand as confidence builds,” Roberts said. “We do think, when we look at the category, there could be about a 10% increase over the coming years for corrugated in terms of increasing volume,” he added. Increasing demand has prompted the company to raise packaging prices.