Bunzl (BNZL) is still growing, but not as fast as the City would like. Growth excluding acquisitions, slowed from 4.3 per cent in the first half to 2 per cent in the third quarter of 2012, and the share price fell 4 per cent in response. Broker J.P.Morgan Cazenove trimmed its forecast for 2012 pre-tax profit from £326m to £319m (giving EPS of 69.75p), and next year from £355m to £346m (EPS 74.99p).
A slower performance in North America, responsible for 54 per cent of Bunzl's revenue, and currency impacts were the main factors. In North America lower prices for resin-based products, 40 per cent of Bunzl's revenues, were to blame. Trading in Continental Europe, despite a grim outlook, have "slightly improved" though profit margins werer weaker, and the UK and Ireland increased profits and margins on steady revenue growth.
