Why is Bunzl stock sliding today?

Bunzl's stock experienced a decline of 2.3% to trade at 2,746p after the company's Q3 2026 trading statement fell short of expectations. The company reported a 3.1% growth in revenue at constant exchange rates and underlying revenue up 3.7%, driven by inflation and volume growth in North America. However, the market reacted negatively due to the gap between expectations and delivery, as the stock had been trading near its 52-week high before the update.

The guidance reiterated rather than upgraded, leading to profit-taking. Activist investor Elliott, with a stake of nearly 5%, is pushing for a buyback and a review of North American operations, adding uncertainty. Bunzl has completed about £225 million of its £500 million share buyback program. The broader market was relatively weak, with the FTSE 100 opening around 0.5% lower and facing pressure from banks, miners, and Bank of England probe into Barclays.

UK unemployment data showed a surprising dip, but overall stock market sentiment remained negative. Despite CEO Frank van Zanten's comments on the resilience of the business and confidence in 2026 for future profit growth, the shares trading above their 52-week low of 1,982p meant that today's in-line update was not enough to sustain the recent rally.