REG - Bunzl PLC - Trading Statement

BunzlAnnouncement

24/04/2024 07:00

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RNS Number : 7382L  Bunzl PLC  24 April 2024

24 April 2024

BUNZL Q1 TRADING STATEMENT

RESULTS AS EXPECTED, GUIDANCE UNCHANGED

 

Bunzl plc, the specialist international distribution and services Group, today
announces its trading statement for the period since 31 December 2023.

Bunzl's resilient business model continues to perform well, following its
strong performance over recent years. Adjusted operating profit for the
quarter was in line with expectations and the Group maintains its profit
guidance for the year.

Group revenue in the first quarter declined by 2.4% at constant exchange
rates, with underlying revenue, which is organic revenue adjusted for trading
days(1), declining by 5.4% as expected. This was mainly driven by volume
reduction in our US foodservice redistribution business, the ongoing impact
from transitioning customer specific inventory in our US retail business, and
deflation. Acquisitions contributed growth of 2.9% at constant exchange rates.
Overall, at actual exchange rates, Group revenue declined by 5.9%. Operating
margin over the quarter was strong, supporting our outlook for the year.

The Group's guidance remains unchanged(2) from our FY results announcement.
The Group continues to expect to deliver slight revenue growth in 2024, at
constant exchange rates, driven by acquisitions already completed in 2023 and
2024; with underlying revenue declining slightly. Group operating margin is
expected to be slightly below the record level reported for 2023.

Following the Group's announcement in February that it has signed an agreement
to acquire Nisbets, the UK Competition and Markets Authority has indicated in
a response to a briefing paper from Bunzl that it has no further questions on
the transaction. The acquisition is still subject to clearance by the Irish
competition authority which is expected during the first half of 2024. At the
end of February, Bunzl completed its anchor acquisition in Finland of Pamark.
In addition, the Group has sold its business in Argentina to the management
team. This safety business had a total revenue in 2023 of c.£3 million.

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

 

"I am pleased with the strategic progress that we continue to make after
achieving a strong margin performance in 2023. We are taking appropriate
action to pursue the opportunities for volume growth in our foodservice
redistribution business in North America and this focus on organic growth,
alongside our ongoing actions to further improve profitability and returns
will enhance the Group's prospects over the medium term. After a strong start
to the year for acquisitions, our pipeline is active and our balance sheet
remains strong."

 

Enquiries:

 

 Bunzl plc                                   Teneo

 Frank van Zanten, Chief Executive Officer   Martin Robinson

 Richard Howes, Chief Financial Officer      Olivia Peters

 Tel: +44 (0)20 7725 5000                    Tel: +44 (0)20 7353 4200

1.     Net of the benefit of growth in excess of 26% per annum in
hyperinflationary economies, largely in Turkey, which contributed a small
decrease of 0.1%

2.     The guidance does not include the acquisition of Nisbets, however
it does now include the Pamark acquisition, which was completed at the end of
February 2024

 

 

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