Yahoo Finance FTSE 100: Bunzl forecasts 17% jump in revenues
UK business supplies distributor Bunzl (BNZL.L) said it expects revenues to jump 17% driven by strong demand and inflation.
The company, which supplies with a range of products from food packaging, latex gloves, work wear, and stationery to disposable cutlery and coffee cups, said inflation had driven underlying revenue growth, which had been further supplemented by acquisitions.
The blue-chip company said it expected revenue to increase by 17% for the year ending 31 December, compared with £10.23bn ($12.44bn/€11.68bn) a year earlier.
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Bunzl said its adjusted operating margin for 2022 is expected to be slightly ahead of prior guidance, and will be in line with 2021, when it was 7.3%, down from 7.6% in 2020.
Frank van Zanten, CEO, said: “Bunzl's performance over the year has continued to demonstrate the strength and resilience of the Bunzl business model.
“In addition, we have committed more than £280m of spend to acquisitions over the year, with our pipeline remaining active and supported by our strong balance sheet.”
Bunzl forecast revenue in 2023 would be slightly higher than in 2022, driven by both organic growth and acquisitions. The company bought a number of businesses during the year, and on Tuesday announced a further four bolt-on deals, as well as the sale of its UK healthcare division, to generate a "small cash inflow".
The company said it expects adjusted operating profit in 2023 to be resilient.
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“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,” van Zanten said.
“Furthermore, we have continued to deliver on key strategic objectives, including supporting customers with innovative products that are better suited to a circular economy and have had our ambitious carbon emission reduction targets approved by the ScienceBased Targets initiative (SBTi),” he added.
