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    Simona Sarli

    Research Analyst at Bank of America

    Simona Sarli's questions to BUNZL (BZLFY) leadership

    Simona Sarli's questions to BUNZL (BZLFY) leadership • Q4 2022

    Question

    Simona Sarli inquired about the 2023 outlook, specifically asking for expectations on volume growth, the impact of increased tendering activity, and the price increases factored into the guidance. She also asked about the margin difference on new tenders and the specifics of savings from automation initiatives.

    Answer

    CEO Frank van Zanten stated that overall sales are expected to be slightly higher, driven by acquisitions and carry-over inflation. He noted that volumes might be slightly lower due to increased tender activity. Regarding tenders, he explained that while margins on retained business can be slightly lower, Bunzl often mitigates this by offering higher-margin own-brand alternatives. He clarified that the mentioned automation savings were an example of ongoing efficiency efforts, not a group-wide target. CFO Richard Howes concurred with the outlook.

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    Simona Sarli's questions to BUNZL (BZLFY) leadership • Q2 2022

    Question

    Simona Sarli from Bank of America inquired about the breakdown of the 15.4% underlying revenue growth between price and volume, including a comparison to 2019 levels. She also asked about the drivers for the strong H1 margin and the reasons for the implied margin decline in H2.

    Answer

    CFO Richard Howes explained that the 15.4% growth comprised low single-digit volume recovery and low-to-mid-teens inflation. He noted that while North American volumes are ahead of 2019, Europe and the UK are still below. The better-than-expected H1 margin was attributed to a favorable mix and strong inflation pass-through. The cautious H2 margin outlook reflects anticipated volume slowdowns and a continued decline in higher-margin COVID-related sales, which disrupts typical seasonality.

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    Simona Sarli's questions to BUNZL (BZLFY) leadership • FY 2021

    Question

    Simona Sarli of Bank of America inquired about the status of the Walmart contract renewal, its economic impact, and the breakdown of recent growth drivers, specifically separating inflation from volume for the base business and for North American results compared to 2019.

    Answer

    CEO Frank Andre van Zanten confirmed that discussions with Walmart are ongoing, noting the contract represents 8-9% of group turnover with low-single-digit margins. He stated that the base business growth was approximately two-thirds inflation and one-third volume. CFO Richard Howes added that North America was the primary driver of inflation, which accelerated in Q4, and that its growth also reflects COVID-related sales and acquisitions.

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