Bunzl distributes goods from hard hats to coffee cups
(Picture: bunzl)Bunzl has lifted its revenue guidance for the full-year, with rising global inflation rates boosting its underlying performance.
The FTSE 100 business supplies and packaging distributor also said acquisitions played a part as it forecast a rise on 16% in first half revenue at actual exchange rates, with its operating margin expected to be higher than “historic levels”.
Bunzl, which supplies a range of essential goods from coffee cups to hard hats, has made over 180 bolt-on acquisitions since 2004. Frank van Zanten, chief executive officer, pointed to more dealmaking, saying: “ Our acquisition momentum remains strong, with our active pipeline supported by a strong balance sheet.”
Bunzl described inflation as the “key driver of performance”, with a “very strong base business recovery” within its UK and Ireland unit. It also described revenue growth in North America as “very strong”, and momentum in continental Europe as “strong”.
Revenue rises in the rest of the world were “moderate”, with “very strong growth in Asia Pacific partially offset by the expected decline in Covid-19 related sales in Latin America.”
Its shares were one of only three FTSE 100 constituents to make gains on Thursday morning, rising 0.3% to 2678p.
