Proactive Investors - Bunzl PLC (LON:BNZL) was the biggest faller on the FTSE 100 this morning, with shares of the distributor of working capital items down 2.8%, retreating further from their recent all-time high.
This is despite the group reporting an improving sequential organic revenue performance through the third quarter, with a decline of 1.2%.
Group revenues at constant currency grew by 5.8%, with acquisitions delivering 6.8%.
Acquisition activity has continued with the following announced this morning: an August acquisition of Cermerón, a regional distributor of cleaning & hygiene products to foodservice and hospitality customers in Southern Spain; September's acquisition of Cubro Group, a distributor of mobility aids and clinical furniture to the aged care, community care and hospital markets in New Zealand; DBM Medical Group, a specialist distributor of orthopaedic surgery products also in New Zealand; plus October's addition of Arrow County Holdings, a distributor of cleaning and hygiene products joined in the UK.
On valuation, analysts at Stifel noted that the shares trade at an 2025 P/E of 17x, "in line with its historical average".
"We are 'hold' rated and remain watchful of underlying trading trends, which remain subdued due to deflationary and volume pressures. That said, Bunzl's margin has been resilient and the updated capital allocation policy at the group's interims with ongoing buybacks is likely to provide share price support."