DAVY VIEW

DS Smith will release H1 FY25E results for six months to October 2024 on December 5th. While modelling 1.5% H1 FY25E box volume growth, due to OCC and containerboard raw material cost inflation, we expect a 41% fall in H1 FY25E EBITA to £215m (H1 FY24: £336m), largely a timing impact before H2 FY25E profit recovery via higher box prices and easing cost inflation. Subject to European regulatory clearance, we expect International Paper’s (IP) acquisition of DS Smith to complete in January 2025, anticipating DS Smith shares to continue tracking IP offer terms until takeover completion.