Sylvia Barker's questions to BUNZL (BZLFY) leadership • Q4 2022
Question
Sylvia Barker questioned the margin guidance, asking about the potential revenue scope impacted by retendering. She also inquired about the group's current cost exposure to plastics and the expected trajectory for working capital into 2023 after recent improvements.
Answer
CFO Richard Howes stated that a catch-up in tender activity after three benign years is expected, which could pressure margins. He confirmed plastics are broadly 30% of the business and that the shift to alternatives is margin-positive. On working capital, he expects inventory levels to continue normalizing toward 2019 levels while maintaining discipline on receivables and payables. CEO Frank van Zanten added that increased price negotiations, not just formal tenders, contribute to the cautious margin outlook.