REG - Bunzl PLC - Trading Statement

BunzlAnnouncement

15/06/2023 07:00

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RNS Number : 7594C  Bunzl PLC  15 June 2023

15 June 2023

 

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 2023.

 

The Group is expected to deliver another resilient performance, with Group
revenue in the first half expected to increase year-on-year by 4% to 5% at
actual exchange rates, and to grow by up to 1% at constant exchange rates.
Growth at constant exchange rates is expected to be driven by acquisitions,
although partially offset by the impact of the UK healthcare disposal, and
with underlying revenue growth expected to be broadly flat(1). Group adjusted
operating margin for the first half is expected to be around the level
achieved in the first half of 2022.

 

Underlying revenue in North America is expected to decline moderately, driven
by volume weakness in our foodservice sector, some of which is anticipated to
be temporary, and with reducing benefit from inflation over the period.
Inflation is expected to drive good underlying revenue growth in Continental
Europe and strong growth in UK & Ireland. Underlying revenue growth in
Rest of the World is expected to be impacted by a decline in Covid-19 related
sales.

 

At constant exchange rates the Group continues to expect revenue in 2023 to be
slightly higher than in 2022, driven by both organic growth and announced
acquisitions, and partially offset by a small impact from the UK healthcare
disposal. Given performance year-to-date, the Group is increasing its 2023
operating margin guidance to be slightly lower than that achieved over 2022.

 

The Group also announces today that it has entered into an agreement to
acquire EHM, a distributor of a wide range of PPE products in the UK, which is
complementary to our existing safety business. The business generated revenue
in 2022 of £18 million.

 

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

 

"Bunzl continues to demonstrate resilience, with our operating margin over the
first six months of the year expected to remain well ahead of historical
levels and driving an upgrade to our full year expectations. Our acquisition
momentum remains strong, with the acquisition of EHM, announced today,
enhancing our safety offering in the UK. Year-to-date we have announced six
acquisitions, including Bunzl's 200(th) since 2004, with our pipeline
remaining active and supported by a strong balance sheet.

 

Insight event:

On 29 June 2023, Bunzl will be holding a North America insight event for
investors. The virtual event will be hosted by Jim McCool, our CEO of North
America, and he will be joined by the Managing Directors leading our safety,
food processor and agriculture businesses in the region. The event will be
live from 3pm - 4.15pm BST. Registration details are available on
www.bunzl.com.

 

Note:

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

 

Enquiries:

 Bunzl plc                                     Teneo

 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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