DAVY VIEW

DS Smith’s Q3 FY24 update indicates a return to positive (c.1%) like-for-like (LFL) box volume growth in February 2024. Our unchanged FY24E estimates of £701m adjusted EBIT and 33p adjusted EPS sit in-line with the street. While DS Smith did not comment on Mondi merger discussions, under UK takeover rules, Mondi is obligated to “put-up or shut-up” by 17:00 tomorrow (March 7th). Awaiting merger developments, we reaffirm our DS Smith ‘Outperform’ view