October 22, 2019 / 10:59 AM / a month ago

BUZZ-Bunzl: At multi-year low on weak organic rev growth

(Updates)

** Shares of business supplies distributor fall as much 4.5% to their lowest in over 3-1/2 years; among top losers on London’s blue-chip index

** Continues to forecast slowing underlying revenue growth for year, blaming troubles across countries and sectors for its woes

** Q3 revenue up 0.5% at constant currency, helped by acquisitions, but dimmed by a 1% drop in organic revenue, which is slightly below J.P.Morgan estimate of a 0.2% drop

** In April, it warned of slowing growth, particularly in its biggest market - North America - where it is selling less to customers in the grocery and retail sectors

** JPM estimates BNZL’s organic growth for FY 2019 to be flat from previous expectation of a 0.3% rise, but underlying EBITA estimate is broadly unchanged

** BNZL shares down >18% so far this year, on track for steepest yearly losses since 1990

** JPM believes stock needs positive organic growth before it can outperform (Reporting by Yadarisa Shabong in Bengaluru)

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