Bunzl’s inflation-proof credentials had been a big bull point for the distributor of everything. It was enough to convince investors to look past the fading Covid boom in sales of hygiene and personal protective equipment during the pandemic.
It can no longer rely on hoisting prices. Organic revenue declined 4.7 per cent during the third quarter, worse than the 0.4 per cent decline over the first half of the year and a miss against analyst forecasts. It means that achieving the 0.6 per cent growth forecast by analysts for the second half of this year will be a stretch. Revenue for the year is now expected to be “slightly lower” at constant exchange rates, rather than “slightly higher”. There are several impediments at play. One
