By Bunzl is set to reveal its 2023 financial results on Monday. Let’s take a closer look at what to expect.
Revenue Forecast
According to Visible Alpha, the revenue consensus for Bunzl is projected to be 11.84 billion pounds ($14.99 billion) for 2023, a decrease from the previous year’s GBP12.04 billion. Analysts anticipate a moderate underlying organic performance with adjustments for pandemic-related product comparisons from 2022 and normalization of product and revenue mix, as highlighted by Shore Capital analyst Robin Speakman.
Adjusted Operating Profit Forecast
The Visible Alpha consensus for adjusted operating profit is expected to be GBP918.3 million. In comparison, Bunzl reported GBP885.9 million for the same metric in 2022.
Stock Performance
Currently, Bunzl shares are trading around 3,274 pence, showing a 9.1% increase year-to-date.
Key Points to Monitor
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Operating Margins: In December, Bunzl announced that 2023 adjusted operating margins were slightly above the previous record of 7%. Analysts are keen on understanding the factors driving this performance, including underlying margin trends and a bias towards higher margin acquisitions.
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Cash Conversion: Known for its strong cash conversion capabilities, Bunzl is expected to demonstrate this strength once more in the 2023 results. Shore Capital’s Speakman is hopeful to see cash conversion surpassing 100%.
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Management Commentary: Analysts are looking forward to management’s outlook on returning to a normalized trading pattern. While organic revenue growth and margin improvement might be challenging in 2024, insights into future developments will be crucial.
Stay tuned for Bunzl’s upcoming financial announcement to get a clearer picture of its performance.
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