Bunzl reported steady third-quarter growth and reiterated its full-year guidance, as its North American business continued to drive the distribution group forward.
Bunzl is a company that’s difficult to get excited about, but today’s update demonstrates why it’s a solid play on economic activity.
The company said group revenue rose 3.1% in the quarter at constant currency, with underlying revenue up 3.7%, supported by both price inflation and volume growth, led by its North America distribution arm. Fewer trading days in the period trimmed revenue growth.
After upgrading its half-year guidance, Bunzl said it remained on track and still expected modest underlying revenue growth and a broadly stable operating margin.
Frank van Zanten, Chief Executive Officer of Bunzl, said: “Bunzl has delivered another quarter of good underlying revenue growth, with continued volume growth and effective management of inflation in volatile markets demonstrating the resilience of our business. Our performance remains consistent with our expectations and we reiterate our guidance for the full year.
The company, which distributes everyday essentials such as packaging and safety equipment, said it had completed the acquisition of Blueleaf Care, a UK distributor to care and nursing homes with annual revenue of £58m, as it continued to pursue bolt-on deals. It has also completed about £225m of a £500m share buyback.