REG - Bunzl PLC - Trading Statement

BunzlAnnouncement

30/06/2022 07:00

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RNS Number : 7013Q  Bunzl PLC  30 June 2022

30 June 2022

 

BUNZL PRE-CLOSE STATEMENT

 

Bunzl plc, the specialist international distribution and services Group, is
updating the market today prior to entering its closed period for the six
months ending 30 June 2022.

 

The Group is expected to deliver very strong growth over the period,
reflecting the resilience and strength of the Bunzl business model. Group
revenue in the first half is expected to increase year-on-year by
approximately 16% at actual exchange rates and by 12-13% at constant exchange
rates(1), with inflation continuing to drive underlying revenue growth and the
impact of acquisitions further supplementing growth. Group adjusted operating
margin for the first half is expected to be slightly higher than historical
annual levels.

 

Across our business areas inflation remains the key driver of performance.
Very strong revenue growth has been maintained in North America over the
period and negotiations with our largest customer are constructive and
ongoing. Continental Europe similarly maintained strong momentum, whilst the
UK & Ireland's operating margin continues to see year-on-year improvement
alongside very strong base business recovery. Rest of the World's revenue
growth has been moderate, with very strong growth in Asia Pacific partially
offset by the expected decline in Covid-19 related sales in Latin America.

 

The Group is upgrading its guidance for the year on the basis of very strong
revenue growth to date and announced acquisitions. At constant exchange rates
the Group now expects very good revenue growth in 2022, driven by good organic
revenue growth and the positive contribution of acquisitions announced in the
last 12 months. Growth of the base business is expected to be only partially
offset by the further normalisation of sales of Covid-19 related products,
albeit these are expected to remain ahead of 2019 levels. We continue to
expect Group operating margin in 2022 to be slightly higher than historical
levels.

 

Commenting on today's announcement, Frank van Zanten, Chief Executive Officer
of Bunzl, said:

 

"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. Our acquisition
momentum remains strong, with our active pipeline supported by a strong
balance sheet."

 

 

Note:

1.     The number of trading days will not have an impact on growth over
the period.

 

 

Enquiries:

 Bunzl plc                                     Tulchan

 Frank van Zanten, Chief Executive Officer     Martin Robinson

 Richard Howes, Chief Financial Officer        Olivia Peters

 Sunita Entwisle, Head of Investor Relations   Tel: +44 (0)20 7353 4200

 Tel: +44 (0)20 7725 5000

 

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