Bunzl delivers 'strong growth' in Q1

Distribution and services business Bunzl said on Wednesday that it had delivered "strong growth" in the first quarter, with overall group revenue up 12.5% at constant exchange rates.

At constant exchange rates, underlying revenue growth was 11.0%, mainly driven by inflation and continued momentum in its base business, with fewer trading days than the comparable period negatively impacting revenue by 1.7%.

Acquisitions also contributed a further 3.2% in growth at constant exchange rates, although growth was partially offset by an expected decline in sales from its top eight Covid-19 related products.

The FTSE 100-listed firm added that full-year guidance remained unchanged, with Bunzl expecting "moderate revenue growth" at constant exchange rates, driven by the impact of acquisitions completed in the last 12 months and supported by "a slight increase" in organic revenue. However, the continued recovery of its base business was expected to be partially offset by the further normalisation of sales of Covid-19 related products.

Chief executive Frank van Zanten said: "Our entrepreneurial teams have continued to deliver good growth through a combination of passing on substantial inflation and volume growth, supported by recovering markets and with our performance over the last two years further strengthening our competitive position.

"Our diversified portfolio remains a key determinant of the strength and resilience of our performance. We continue to focus on delivering our long-term strategic objectives that will drive further compounding growth. Our acquisition pipeline is active and supported by our strong balance sheet."

As of 0835 BST, Bunzl shares were up 0.26% at 3,075.0p.