Half Year 2020 Bunzl plc Earnings Presentation Transcript

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

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : A couple of questions on growth. Maybe firstly, could you give us an idea of the pricing impact on revenue in H1 and maybe how that developed in Q1, Q2 presumably with the short supply and your ability to store some of these products? Maybe you did have a pricing benefit to some extent in Q2. To what extent is that maybe tailing off now? And then just on the incremental GBP 600 million of revenue relating to the top 8 products. Could you maybe just split it a little bit more? Or give us an idea, maybe firstly, how much of that was from products, which, I guess, people buy once like signs, barriers, the disinfectant kind of stand that you've shown on the slide? Then secondly, if you can talk about the large orders versus small orders within that? And then finally, could you maybe just comment how that's split roughly between the customer segments? I would appreciate that. Walmart would have been buying a lot of masks. Likewise, you would have made a lot of sales to your traditional safety clients as well.

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : And maybe if I just follow up, obviously, you've not made any comment around exit rates or what you're seeing in July and August, but -- yes, I guess, you have a much stronger end of June than you expected at the pre close. So could you just comment at all in terms of -- was that driven by the large customer orders, small orders or the rest of the business maybe being a little bit better? And how that potentially carries on into the next couple of months?

Question: Katherine Somerville - UBS Investment Bank, Research Division - Analyst : Yes. A lot of my questions have also been answered, but one final one. You mentioned that you're slightly concerned about the financial health of some of your customers. Is this predominantly smaller customers? Or is it sort of more related to the end markets that you operate in? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 24, 2020 / 8:30AM, BNZL.L - Half Year 2020 Bunzl plc Earnings Presentation

Question: Katherine Somerville - UBS Investment Bank, Research Division - Analyst : Yes. Okay. And just one quick follow up. Are you considering expanding into any other end market to kind of offset these weaker end markets?

Question: Andrew Charles Grobler - CrTdit Suisse AG, Research Division - Analyst : Just 3 for me. But first 2 very quick. Just to check on the provisions, the bad debt provision. Did they amount to around GBP 30 million that you took against EBITDA in the first half? I think you said that, but just to clarify. Secondly, on the prepayment, the GBP 68 million. Would you expect that to reverse into the second half? And then thirdly, on a slightly broader -- from a fairly broader perspective, you've talked about the benefits you've seen of diversification of financial strength and digital selling. Given that and the likely challenges of some of your competitors, how does that make you feel about kind of longer-term growth? Historically, organic has been around 2% over the last 15 years or so. Given those advantages and assuming the world is -- goes back to some kind of normality, do you think it could be more than that as you take share over the next several years?