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Bunzl expects to report 17% jump in annual revenue

Published 12/21/2022, 03:04 AM
Updated 12/21/2022, 03:11 AM
© Reuters.

By Scott Kanowsky 

Investing.com -- Bunzl PLC (LON:BNZL) says it expects to deliver a surge in top-line growth in 2022, thanks largely to inflation and a string of acquisitions worth more than a quarter of a billion pounds.

Group revenue at the British distribution specialist is seen rising by about 17% year-on-year at actual exchange rates and 10% at constant exchange rates, according to a trading update released on Wednesday.

Adjusted operating margin for the 12-month period ending on December 31 is anticipated to be in line with the last year's mark of 7.3% at constant exchange rates and above historic levels.

"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," said chief executive officer Frank van Zanten in a statement.

He also credited a positive effect from the more than £280 million (£1 = $1.2151) Bunzl has spent this year to build up new business pipelines. The announcement comes a day after the firm, which supplies everything from hard hats to disposable cutlery, agreed to acquire four businesses and sell its U.K. healthcare unit.

The purchases included New Zealand-based ophthalmology products distributor Toomac, Australian medical technology devices business GRC, Czech personal protection equipment maker VM Footwear, and Danish packaging products firm PM Pack. Bunzl will also offload its British healthcare division - which generated £216M in revenue in 2021 - to Dutch company Mediq.

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