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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on BNZL

Bunzl's recent performance was positively driven by strategic acquisitions, including the purchase of Brazilian food packaging business Solupack, and resumed share buyback programme, which enhances shareholder value. The company's decision to pay a dividend of £0.202 per share also underscores its commitment to rewarding investors. Additionally, its revenue remained flat at UK£5.76 billion in the first half of 2025, and EPS came in at UK£0.56. Bunzl's efforts to support communities in need, such as providing over 57,000 rolls of toilet paper to food banks across Canada, also highlight its positive social impact.

1.c. Company Highlights

2. Bunzl's 2025 Earnings: A Challenging Year with a Positive Outlook

Bunzl's revenue grew by 3% at constant exchange rates in 2025, driven by acquisitions and slightly positive underlying growth, reaching a total revenue that supported an adjusted operating profit of GBP 910 million, a decline of 4.3% compared to 2024. The operating margin was 7.6%, impacted by the margin decline in the North America distribution business. The earnings per share (EPS) was 0.979, in line with analyst estimates. The company's financial performance was affected by challenging market conditions, including organizational change and end-market weakness.

Publication Date: Mar -03

📋 Highlights
  • Adjusted Operating Profit Decline: Adjusted operating profit dropped 4% at constant exchange rates to GBP 910 million in 2025, driven by North America distribution margin pressures and operational challenges.
  • Revenue Growth and Margin Pressures: Revenue rose 3% at constant exchange rates, but operating margin fell to 7.6% (vs. 8.3% in 2024), impacted by North America distribution restructuring and European deflation.
  • Free Cash Flow and Share Buybacks: Bunzl generated GBP 579 million in free cash flow, funded a GBP 200 million share buyback, and maintained adjusted net debt-to-EBITDA at 2x, within its target range of 2–2.5x.
  • North America Operational Recovery: Despite a 11.5% decline in North America adjusted operating profit, leadership changes and cost management initiatives improved agility, with 1% own-brand penetration growth and EUR 50 million new business wins in Europe.

Segment Performance

The North America distribution business was impacted by its transition to a sales and operations model, resulting in an 11.5% decrease in adjusted operating profit to GBP 441 million. In contrast, Continental Europe saw revenue growth of 2.5%, driven by acquisitions, with adjusted operating profit decreasing by 3.6% to GBP 205 million. The company's own brand strategy is progressing well, with own brand sales increasing from 28% to 30% of the overall cost of sales.

Cash Flow and Capital Allocation

Bunzl generated GBP 579 million of free cash flow, a 9% decline year-on-year, reflective of lower adjusted operating profit. The company remains committed to its capital allocation priorities, including investing in businesses for organic growth, paying a progressive dividend, and making value-accretive acquisitions. The adjusted net debt to EBITDA was 2.0x, within the target range of 2 to 2.5x.

Outlook and Valuation

The company expects moderate revenue growth in 2026, driven by underlying revenue growth and a small benefit from announced acquisitions. Analysts estimate revenue growth of 2.4% for the next year. With a current P/E Ratio of 18.7 and an EV/EBITDA of 10.62, the market is pricing in a certain level of growth. The dividend yield is 3.3%, indicating a relatively attractive return for income investors. As Bunzl continues to drive operational efficiencies and make disciplined acquisitions, the company's long-term strategy remains focused on driving profitable organic growth.

3. NewsRoom

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Top UK Dividend Stocks To Consider In November 2025

Nov -19

Source:

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Bunzl plc's (LON:BNZL) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?

Nov -18

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Bunzl plc (LON:BNZL) Shares Could Be 38% Below Their Intrinsic Value Estimate

Nov -04

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Top UK Dividend Stocks To Consider In October 2025

Oct -21

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Bunzl (LON:BNZL) Has Announced A Dividend Of £0.202

Oct -18

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Adidas to Enter Safety Footwear in 2026 With New ‘Pro Work’ Line

Oct -08

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Bunzl Insiders Placed Bullish Bets Worth UK£2.19m

Oct -08

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adidas and GLO Brands B.V., announce long-term partnership to enter the safety footwear market

Oct -08

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.61%)

6. Segments

Food Service

Expected Growth: 2.5%

Bunzl plc's Food Service segment growth of 2.5% is driven by increasing demand for outsourced food services, expansion in emerging markets, and strategic acquisitions. Additionally, the segment benefits from a shift towards convenience and online food delivery, as well as a growing need for food safety and hygiene solutions.

Grocery

Expected Growth: 2.8%

Bunzl plc's Grocery segment growth of 2.8% is driven by increasing demand for convenience and online shopping, leading to higher sales of food packaging and disposable products. Additionally, the company's focus on sustainability and eco-friendly products resonates with environmentally conscious consumers, contributing to the segment's growth.

Safety

Expected Growth: 2.2%

Bunzl plc's 2.2% growth is driven by its diversified customer base, steady demand for essential products, and strategic acquisitions. The company's focus on sustainability and e-commerce capabilities also contribute to its growth. Additionally, Bunzl's strong cash generation and disciplined capital allocation enable investments in growth initiatives, further supporting its steady growth trajectory.

Cleaning and Hygiene

Expected Growth: 2.9%

Bunzl plc's Cleaning and Hygiene segment growth of 2.9% is driven by increasing demand for infection prevention products in healthcare, rising awareness of hygiene standards in foodservice and retail, and growing adoption of automated cleaning solutions in industrial markets.

Retail

Expected Growth: 2.6%

Bunzl plc's Retail segment growth of 2.6% is driven by increasing demand for convenience and e-commerce, leading to higher sales of packaging materials. Additionally, the company's strategic acquisitions and focus on sustainability have expanded its customer base and improved operational efficiency, contributing to the segment's growth.

Healthcare

Expected Growth: 3.1%

Bunzl plc's Healthcare segment growth of 3.1% is driven by increasing demand for infection prevention products, expansion into emerging markets, and strategic acquisitions. Additionally, the segment benefits from a growing trend towards outsourcing of non-core services by healthcare providers, leading to increased adoption of Bunzl's products and services.

Other

Expected Growth: 2.4%

Bunzl plc's 2.4% growth in 'Other' segment is driven by increasing demand for safety products, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on sustainability and e-commerce solutions has contributed to growth. Furthermore, the 'Other' segment has benefited from the company's ability to adapt to changing market conditions and customer needs.

7. Detailed Products

Food Packaging

Bunzl plc provides a wide range of food packaging products, including bags, wraps, and containers, designed to preserve freshness and quality of food products.

Cleaning and Hygiene

Bunzl plc offers a variety of cleaning and hygiene products, including cleaning chemicals, paper products, and janitorial supplies.

Foodservice Disposable

Bunzl plc provides disposable products for the foodservice industry, including cups, plates, and utensils.

Safety and Protection

Bunzl plc offers a range of safety and protection products, including personal protective equipment, first aid kits, and safety signs.

Retail and Grocery

Bunzl plc provides products and services to the retail and grocery industries, including store supplies, packaging materials, and equipment.

Healthcare and Medical

Bunzl plc offers a range of products and services to the healthcare and medical industries, including medical supplies, equipment, and disposables.

8. Bunzl plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Bunzl plc operates in a industry with low threat of substitutes due to the specialized nature of its products and services.

Bargaining Power Of Customers

Bunzl plc has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Bunzl plc has a moderate bargaining power of suppliers due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The industry in which Bunzl plc operates is highly competitive, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.45%
Debt Cost 5.93%
Equity Weight 53.55%
Equity Cost 6.27%
WACC 6.11%
Leverage 86.75%

11. Quality Control: Bunzl plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
BIC

A-Score: 6.6/10

Value: 7.4

Growth: 4.1

Quality: 6.7

Yield: 8.1

Momentum: 5.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Jerónimo Martins

A-Score: 6.1/10

Value: 6.1

Growth: 5.9

Quality: 3.9

Yield: 5.6

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Cranswick

A-Score: 5.3/10

Value: 4.1

Growth: 6.7

Quality: 5.4

Yield: 1.9

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Colruyt

A-Score: 5.0/10

Value: 6.7

Growth: 4.6

Quality: 4.2

Yield: 5.6

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Bunzl

A-Score: 4.6/10

Value: 5.2

Growth: 5.3

Quality: 5.1

Yield: 5.0

Momentum: 0.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
SalMar

A-Score: 4.5/10

Value: 1.0

Growth: 6.6

Quality: 3.2

Yield: 5.6

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.84$

Current Price

21.84$

Potential

-0.00%

Expected Cash-Flows