Bunzl acquires three “highly complementary” companies

Bunzl’s (LON: BNZL) currency adjusted profit before income tax is up by 25.6% to £715.6m as demand for supplies rose during the pandemic.

The distribution company saw its adjusted revenue climb by 9.4% compared to the year before, up to £10.1bn.

Bunzl announced a dividend of 54.1%, up 5.5% from the year before, while basic earnings per share rose by 22% to 128.8p. Shortly after market opening, Bunzl’s share price is down by 3.13% to 2,167p per share.

A surge in bulk orders of disposable gloves, hand sanitiser and masks helped the distributor to grow its profit significantly during the pandemic.

Frank van Zanten, chief executive of Bunzl, discussed the effect of the pandemic on the business:

“The pandemic has served to highlight the vital role that Bunzl plays in ensuring supplies of essential products as well as the benefits of our diversification. As a result of our extensive supply chains and our Asia sourcing and auditing operation, we were able to quickly source and deliver significant quantities of quality assured Covid-19 related products, such as gloves and masks,” said van Zanten.

“Consequently, we were able to offset the negative impact that restrictions had on many of our customers’ businesses, particularly in the foodservice and retail sectors. I am very proud of the role we have played in serving and protecting front line heroes.”

The FTSE 100 company confirmed on Monday it had completed three acquisitions of “highly complementary” companies.

The specialist distribution group acquired Deliver Net in January, in addition to Disposable Discounter and Pinnacle in February.

Commenting on the acquisitions, Frank van Zanten, Chief Executive Officer of Bunzl, said:

“I am pleased to welcome Deliver Net, Disposable Discounter and Pinnacle into the Bunzl family.  All three businesses demonstrate our continued focus on growing Bunzl through the acquisition of high quality businesses. Further, these acquisitions demonstrate Bunzl’s continued acquisition momentum, with our pipeline remaining active and discussions ongoing.”