Shares in support services specialist Bunzl have barely changed over the past year as some of the shine has come off its premium rating.
As AJ Bell notes, Bunzl supplies the things that other firms need to do business, but not items they would sell to their customers.
“For example, it supplies disposable coffee cups to cafes, food wrap to supermarkets, hard hats to builders and cleaning materials, bandages and rubber gloves to hospitals.”
Sales growth has slowed a bit of late, as stockpiling during the pandemic has unwound, especially in the US food distribution business,
A trading update in April revealed sales between January and March fell by 5.9% year-on-year.
Even so, Bunzl still expects to deliver “slight” revenue growth in 2024, on a constant currency basis, helped by acquisitions already made last year.
Analysts expect total 2024 sales to be £11.9 billion, a fraction above 2023’s £11.8 billion.
Analysts currently are looking for annual adjusted operating profit to come in almost flat at £942 million, against £944 million in 2023.