Full Year 2025 Bunzl plc Trading Statement Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Annelies Vermeulen - Morgan Stanley & Co Ltd - Analyst : I have three questions, please. So firstly, if you could quantify your underlying revenue growth in Q4 and how that developed relative to Q3? And if there was any changes in the mix of price and volume within that? Then secondly on -- you're expecting some underlying revenue growth for 2026. Could you talk a little bit more about how your expectations of how your end markets will grow and your expected performance relative to those underlying markets? And then just lastly, on the M&A spend, if you could quantify your year-to-date M&A spend and what gives you that confidence in that improved spend level for next year?

Question: Simona Sarli - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Richard, could you please elaborate a little bit more on the progress that you're making with the initiatives in North America? And also elaborate a little bit more on the margin decline expected in 2026 or so? You said that it's mostly related to cost inflation, but can you please talk a little bit more about trends across the different geographies?

Question: Simona Sarli - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Can I just ask one more question, please? Can you elaborate a little bit more on the evolution of the competitive landscape in North America? So considering that volume remained quite weak and you have still, in some pockets of the market, there's some deflationary pressure on pricing. Do you see overall the competitive landscape having become more aggressive? And if you can differentiate it between what you see between large customers and SMEs? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 17, 2025 / 7:30AM, BNZL.L - Full Year 2025 Bunzl plc Trading Statement Call

Question: Karl Green - RBC Capital Markets Inc - Analyst : I've got three, hopefully, two of them quite quick. Just firstly, on the new business wins and the impact of them as they ramp up on the margins. Could you just, again, just very basic terms, explain when you would expect the margins on that business to actually normalize or get to kind of target levels? And what's driving that in terms of implementation costs? The second one is just around the Nisbets synergies. Can you indicate what the net synergies were in '25 and the expectation for net synergies in '26? And then the last one, just in terms of your logistics costs and specifically driver salaries and wages, are you seeing any impact in North America from the ICE crackdown on unvetted drivers, please.

Question: Simona Sarli - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Richard, one more from my side. Could you talk a little bit about momentum in white label products? So in percentage terms, how much they are contributing in 2025 versus 2024? And what is your expectation for 2026?

Question: Simona Sarli - Bofa Merrill Lynch Asset Holdings Inc - Analyst : But does that mean that in terms of revenue contribution, should I assume to be flat, let's say, compared to 2025 or potentially down?

Question: Simona Sarli - Bofa Merrill Lynch Asset Holdings Inc - Analyst : And then apologies, one last one. It's more like a technical on the -- can you elaborate on the interest cost expectations for 2025 and 2026?

Question: Simona Sarli - Bofa Merrill Lynch Asset Holdings Inc - Analyst : And the similar interest charges in 2026, is that including also M&A that you had in the pipeline or it's based on what you have announced so far?