Bunzl upgrades full-year profit outlook

Bunzl upgraded its full-year profit outlook on Thursday, helped along by acquisitions.

In an update for the year to the end of December, the company said operating profit was set to be "slightly ahead" of prior guidance.

Group revenue for the year is expected to be broadly in line with 2022 at constant exchange rates and excluding the impact of the disposal of its UK healthcare business.

Revenue growth from acquisitions is expected to be offset by a drop in underlying revenue due to lower Covid-19 related sales, "reducing inflation benefit and wider post-pandemic related normalisation trends, particularly in North America".

Including the disposal of the UK healthcare business, total group revenue is set to be 1% to 2% lower on the year at constant exchange rates, and with currency over the year expected to have minimal impact.

Chief executive Frank van Zanten said: "I'm pleased with the performance Bunzl has delivered this year, reflecting the dedicated efforts of our people in supporting our customers around the world.

"The group is on track to deliver moderate adjusted operating profit growth, supported by a record operating margin, and we are guiding to further growth in 2024, continuing to build on the strong performance we have seen over recent year."

"Furthermore, we welcome three new complementary businesses to the group today, taking the total acquisitions announced this year to 17. Over the last four years we have committed a cumulative circa £1.7bn to acquisitions, reflecting a step-up in our spend, and with our pipeline remaining active and supported by our strong balance sheet."