Bunzl plc [BZLFY] Stock Forecast

As a distributor of paper cups, clingfilm, soap, safety equipment and other basic products for the grocery, hospitality, retail and healthcare industries, Bunzl PLC (LSE:BNZL) is far from a very exciting company, but with a share price graph that is a lot higher on the right than it is on the left, it has gained a lot of followers over the years. While there have been concerns raised about the impact on the disposable and plastic-based products it supplies being hit by single-use plastic bans, as have come into force in the UK, shares in the acquisitive FTSE 100 group hit an all-time high above £32 in spring.

Bunzl is a well-run business in the foodservice and industrial peripherals industry. The company expects slightly lower revenue but continues to perform well and make acquisitions. The dividend has been growing steadily, but the current yield is not particularly attractive.

Bunzl PLC (LSE:BNZL) revenue fell 8.8% in the third quarter as sales of Covid-related products continued to drop and it took a hit from the weakness of the pound. However, full-year guidance for adjusted operating  profit was maintained by the FTSE 100-listed group supplier of basic products for the grocery, hospitality, retail and healthcare industries, which said the performance was in line with its expectations.

Shops and fast-food outlets will to have stop using single-use plastics from Sunday (1 October) the government confirmed today. Specifically, cutlery, balloon sticks or polystyrene cups and food containers in England are banned while single-use plastic plates, trays and bowls are being restricted.

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Bunzl PLC (LSE:BNZL)'s first-half results have been well received after the distribution firm raised annual guidance and announced two more bolt-on acquisitions. Analysts at Stifel viewed it "as a good update from Bunzl and see the group as well positioned to continue to consolidate its fragmented end-markets with further opportunity to expand margins.

Bunzl PLC (LSE:BNZL) raised annual guidance as it reported a rise in interim profit alongside a modest increase in revenue. The distribution specialist said in the six months to June 30, pre-tax profit climbed 6.9% to £317.1 million from £296.6 million the year before with revenue up 4.5% to £5.91 billion from £5.65 billion.

A lack of diary entries reflects that it's the end of the UK summer break with a bank holiday on Monday but US jobs at the end of the week should provide some excitement. Tuesday 29 August You know it‘s a quiet week if Bunzl is the highlight but in the absence of any other big names the sundries and distribution specialist has its moment in the sun on Tuesday.

Bunzl shares have slid by 13% since a first-half trading update on 15 June. Shore Cap says that is harsh given a robust underlying performance, a hint of margin improvement and more earnings-boosting acquisitions.

Bunzl, the ever-acquisitive specialist distribution has added over £110 million to its sales through deals in Spain, Brazil, the Netherlands and Canada. In June, Bunzl acquired La Cartuja Complementos Hostelería, a distributor of food service and hospitality equipment in Spain that generated revenue of €5 million (4 million) in 2022.

Bunzl plc is a GB stock and trading under the symbol BZLFY

Bunzl plc stock price is $38.51 today.

Yes, Bunzl plc is a publicly traded company.