Summary
We see the fall in share price post-result as an opportunity for long-term investors to purchase DS Smith (DITHF). The share price has fallen by 13% since the company announced its full-year result on July 2, as investors are concerned about the underlying market condition after management announced to suspend dividends for the coming year. Given the business seems to be in a healthy position with large FMCG/consumer exposures and has received £482 million cash proceeds from selling its plastic business, it is puzzling to rationalize the reasons for suspending the dividends.