Question · Q3 2020
William Kirkness of Jefferies inquired about the M&A pipeline's progress and whether the company's previously upbeat messaging had changed. He also asked about any new, potentially 'sticky' customer growth on an underlying basis.
Answer
CEO & Executive Director Frank van Zanten responded that there is increased interest from businesses looking to sell, and he expects market consolidation to accelerate over the next few years. He noted that valuing businesses is currently challenging. Regarding customer growth, he explained that most additional sales are from existing customers, with large government orders being more of a one-off. However, Bunzl is using the situation to build new relationships where competitors face supply chain issues.