Annual revenues set to jump at Bunzl

Full-year revenues are set to jump at Bunzl, the packaging and materials specialist said on Wednesday, bolstered by high inflation and acquisitions.

Updating on full-year trading, the blue chip said group revenues were expected to increase by 17% year-on-year, or by 10% at constant exchange rates. The group adjusted operating margin was also expected to be "slightly ahead" of prior guidance.

The firm, which sells products companies need to run their own businesses, from hard hats and cleaning goods to disposable cutlery and coffee cups, said inflation had driven underlying revenue growth, which had been further supplemented by acquisitions.

Bunzl has bought a number of businesses during the year, and on Tuesday announced a further four bolt-on deals. It also announced the sale of its UK healthcare division, to Dutch firm Mediq.

Frank van Zanten, Bunzl’s chief executive, said: "Our teams have successfully navigated the inflationary environment and supply chain disruption experienced this year to ensure customers have reliably received the essential products they need.

"Furthermore we have continued to deliver on key strategic objectives….[and] committed more than £280m of spend of acquisitions over the year, with our pipeline remaining active and supported by our strong balance sheet."

Looking to the current year, Bunzl said that despite "continued uncertainties relating to the macroeconomic environment", 2023 revenues were expected to be "slightly higher" than 2022, driven by organic growth and acquisitions.

Adjusted earnings per share, however, were set to be "moderately lower", because of higher interest rates. It also noted that negotiations with its largest customer by revenue were "ongoing".