DAVY VIEW

It is tough to argue with Bunzl’s track record over the long run or indeed its share price performance. While organic growth will be negative in 2021E due to the 2020 COVID boost, we see a return to more normal growth and margins in 2022E. However, as with the period following the Global Financial Crisis (GFC), and considering the high levels of internally funded capital, we anticipate a more acquisitive Bunzl over the next 12-24 months. We initiate with an ‘Outperform’ rating.