Bunzl shares were up 1.7% to 2,717p in early morning trading on Thursday after the group reported an expected 16% rise in revenue at actual rates and a 12% to 13% increase at constant exchange rates in HY1 2022 compared to HY1 2021.
The company noted inflation continued to drive underlying revenue, with its acquisitions providing supplemental growth.
Bunzl also mentioned its adjusted operating margin was projected to be slightly higher than historical annual levels over the term.
The firm added its North American business continued to expand on rising inflation, and that negotiations with its largest customer were “constructive and ongoing.”
The group mentioned strong performances across Europe, along with year-on-year improvement in operating margins for the UK and Republic of Ireland and positive base recovery.
Bunzl commented its revenue growth throughout the rest of the world had been moderate, with high revenue jumps in the Asia-Pacific region offset by a Covid-linked decline in sales in Latin America.
The distribution company confirmed an upgraded guidance as a result of its higher revenue climb and recent acquisitions, with new expectations of strong revenue growth across FY 2022, however the firm did not provide a projection of its estimated figures.
The group said it estimated its business expansions to be marginally offset by the further normalisation of sales of Covid-19 products, although sales are expected to remain ahead of 2019 volumes.
Bunzl also reported a projected FY 2022 group operating margin at slightly higher than historical levels.
“Bunzl has delivered another period of strong growth. We continue to demonstrate the strength of our business model, supported by the depth and resilience of our supply chains and the agility of our people who have responded to the inflationary environment so successfully,” said Bunzl CEO Frank van Zanten.
“Our acquisition momentum remains strong, with our active pipeline supported by a strong balance sheet.”
