DAVY VIEW

In line with our comments on June 30th, we have updated our forecasts for Bunzl. Effectively, the upgrade is c.5% (c.3% organic – primarily driven by inflation; the remainder is FX and the effects of June’s acquisitions). Forecasts appear to be in the perfect storm at present, with inflation and sterling weakness both clear positives for numbers. Any reversion could well unwind quickly, noting that long-run organic revenue growth forecasts are nearer to global GDP growth rates.