Bunzl PLC (LSE:BNZL) interim results on 27 August should confirm a good half-year and increased guidance for the full year, suggests Shore Cap.
The plastics distributables specialist is being helped by better margins with a strong contribution from acquisitions and the completion of the Nisbets transaction.
Shorecap expects reported revenue to be down 3% or c.1% pre-FX with an organic decline for the first half anticipated at 5%, driven by previously disclosed volume reductions and deflation in the US business.
US business is seeing Food Service activities impacted by volume reductions as a transition towards own brands continues.
Shorecap expects first-half revenues of £5.8bn, with EBIT at £430m and adj PBT of £393m.
Its fair value estimate for Bunzl remains at £37/share, based on growing free cash generation, the quality of group operations and long-term assured performance.