REG - Bunzl PLC - Trading Statement

BunzlAnnouncement

26/04/2023 07:00

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RNS Number : 4284X  Bunzl PLC  26 April 2023

 

26 April 2023

BUNZL Q1 TRADING STATEMENT

 

Bunzl plc, the specialist international distribution and services Group, today
announces its trading statement for the period since 31 December 2022.

 

Bunzl's diversified business model has delivered resilient growth, with Group
revenue in the first quarter up 8.4% at actual exchange rates and 1.2% at
constant exchange rates. At constant exchange rates, organic growth of 0.6%
was driven by underlying revenue growth of 1.5%, partially offset by a
negative trading day impact of 0.9%. Underlying revenue growth benefitted from
continued inflation support but was impacted by the expected decline in
Covid-19 related sales. Acquisitions contributed further growth of 2.7% at
constant exchange rates, whilst the disposal of our UK healthcare business
impacted revenue by 2.1%. Adjusted operating margin over the quarter was
slightly ahead of expectations.

 

Underlying revenue growth in Continental Europe and UK & Ireland continued
to be supported by very strong product cost inflation. Underlying revenue
growth in North America, whilst benefitting from continued product cost
inflation, was impacted by volume softness in our foodservice sector, some of
which is anticipated to be temporary. Rest of the World was impacted by the
decline in Covid-19 related sales, including the non-repeat of some larger
orders made during the first quarter of last year.

 

While we see continued uncertainty relating to the macroeconomic environment,
at constant exchange rates the Group continues to expect revenue in 2023 to be
slightly higher than in 2022, driven by both organic growth and announced
acquisitions, and partially offset by a small impact from the UK healthcare
disposal. We expect Group adjusted operating profit to be resilient, with
operating margin slightly higher than historical levels.

 

In April 2023, Bunzl entered into an agreement to acquire Dimasa, a
distributor of cleaning and hygiene products in the Andalusia region of Spain.
The business generated revenue of EUR 4 million (c.£3 million) in 2022. Since
the start of the year, Bunzl has also completed the acquisitions of
Arbeitsschutz-Express in Germany and Capital Paper in Canada.

 

Commenting on today's announcement, Frank van Zanten, Chief Executive Officer
of Bunzl, said:

 

"Our performance over the quarter continues to demonstrate the resilience of
the Bunzl business model and its strategy. I am also pleased to welcome Dimasa
to the Bunzl family. This business is a leading distributor in Southern Spain
and strengthens our presence in this region. Our pipeline is active and our
balance sheet remains strong, and we see significant opportunities for further
acquisition growth to supplement our resilient organic growth."

 

Insight event:

On 29 June 2023, Bunzl will be holding a second insight event for investors,
with a focus on our North America Business Area. The virtual event will be
hosted by Jim McCool, our CEO of North America. The event will be live from
3pm - 4.15pm BST and will include a Q&A session. Registration details will
be made available on our website (www.bunzl.com) ahead of the event.

 

 

Enquiries:

 

 Bunzl plc                                                      Teneo

 Frank van Zanten, Chief Executive Officer                      Martin Robinson

 Richard Howes, Chief Financial Officer                         Olivia Peters

 Sunita Entwisle, Head of Investor Relations                    Tel: +44 (0)20 7353 4200

 Tel: +44 (0)20 7725
 5000

 

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