Bunzl investors may be pleased to see strong levels of revenue growth at the international distribution and services group as both organic revenue growth and the impact of acquisitions helped a 18.8% actual exchange rate rise in revenue in the third quarter.
However, the revenue growth wasn’t enough to see Bunzl shares rise as they dipped 1.5% in the very early minutes of trade on Thursday.
A 4.3% expected reduction COVID-19 related products saw underlying revenue grow 6.1% and account for 10.4% of overall growth.
The group detailed the recent acquisition of Enviropack which generated £7m in the year to August 2022. Bunzl noted the acquisition was consistent with their strategy to boost the circular economy through their packaging operations.
“Our strong performance over the quarter continues to demonstrate the strength and resilience of the Bunzl business model, underpinned by our value-added offering for customers,” said Frank van Zanten, Chief Executive Officer of Bunzl.
“Our commitment to reliably provide essential products and innovative solutions to our customers, our diversified portfolio, and our compounding growth strategy are all factors which contribute to our expectation of continued resilience. I am also pleased to welcome Enviropack to the Bunzl family and our acquisition pipeline remains active.”