Bunzl plc
LSE-BNZL
Company Overview
Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, cleaning and hygiene supplies, and personal protection equipment to grocery stores, supermarkets, and convenience stores. It also provides food packaging, disposable tableware, guest amenities, catering equipment, agricultural supplies, cleaning and hygiene products, and safety items to hotels, restaurants, contract caterers, food processors, commercial growers, and the leisure sector; and gloves, boots, hard hats, ear and eye protection, and other workwear, as well as cleaning and hygiene supplies, and asset protection products to industrial and construction, and ecommerce sectors. In addition, the company offers chemicals and hygiene paper to cleaning and facilities management companies, and industrial and public customers; gloves, masks, swabs, gowns, bandages, and other healthcare related equipment; and healthcare devices to hospitals, care homes, and other facilities serving the healthcare sector. Further, it provides packaging and other store supplies to retail chains, boutiques, department stores, home improvement chains, office supply companies, and related e-commerce sales channels. The company was founded in 1854 and is headquartered in London, the United Kingdom.
Name
Bunzl plc
CEO
Frank Andre Van Zanten
Website
www.bunzl.com
Sector
Trading Companies and Distributors
Year Founded
1854
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Bulls Say
Bunzl is in a class of its own with its global scale, making it unlikely another firm will be able to replicate its cost advantage over the next decade.
Greater brand penetration is a structural mix shift and should increase margins over time.
Bunzl sells cheap, but essential products, reducing volatility during market downturns.
Bears Say
Acquisition multiples have seen annual growth of 10% over the past five years, threatening to reduce returns on invested capital below WACC.
Softness in North American revenue and margins has led to leadership changes after difficulties establishing its brands and creating operational efficiencies.
If Amazon can improve its reliability, it could compete for contracts with Bunzl’s smallest customers.