Bunzl PLC Trading Statement (6937W)
December 14 2023 - 1:00AM
UK Regulatory
TIDMBNZL
RNS Number : 6937W
Bunzl PLC
14 December 2023
14 December 2023
BUNZL PRE-CLOSE STATEMENT
2023 PROFIT OUTLOOK UPGRADED; THREE FURTHER ACQUISITIONS
ANNOUNCED
Bunzl plc, the specialist international distribution and
services Group, is updating the market today prior to entering its
closed period for the year ending 31 December 2023.
Following the Group's strong performance over recent years,
Bunzl expects to deliver another set of good annual results, with
adjusted operating profit expected to be slightly ahead of prior
guidance. Group revenue in 2023 is expected to be broadly in line
with 2022, at constant exchange rates and excluding the impact of
the disposal of our UK healthcare business. Within this, revenue
growth from acquisitions is expected to be offset by the expected
underlying revenue decline, reflective of lower Covid-19 related
sales, reducing inflation benefit and wider post-pandemic related
normalisation trends, particularly in North America. Inclusive of
the disposal of our UK healthcare business, total Group revenue in
2023 is expected to be 1 to 2% lower than in 2022, at constant
exchange rates, and with currency over the year expected to have
minimal impact. Group adjusted operating profit is expected to
deliver moderate growth, with operating margin expected to be
slightly ahead of the previous record level.
Looking ahead, despite uncertainties relating to the wider
economic and geopolitical landscape, the Group expects some revenue
growth in 2024, at constant exchange rates, driven by announced
acquisitions and slightly positive organic growth. Group operating
margin is expected to be broadly in-line with 2023, and to remain
substantially higher compared to pre-pandemic levels, driven by the
higher margin acquisitions acquired since then, as well as an
underlying margin increase.
In November 2023, Bunzl completed the acquisition of Melbourne
Cleaning Supplies, a distributor of cleaning & hygiene supplies
in Australia which expands our customer proposition and complements
our existing business. In 2022, the business generated revenue of
AUD 18 million (c.GBP10 million ).
In addition, Bunzl completed the acquisition of Flexpost in
November 2023, a higher margin distributor of flexible signposts
and bollards in North America with a strong own brand portfolio.
Flexpost generated revenue of USD 4 million (c.GBP3 million) in
2022 and follows other recent acquisitions focused on asset
protection solutions.
In December, Bunzl completed the acquisition of Miracle
Sanitation Supply, a leading cleaning & hygiene distributor in
the Canadian province of Manitoba which strengthens Bunzl's
presence in the region. The business generated CAD 11 million
revenue in 2022 (c.GBP7 million).
Bunzl also completed the previously announced acquisitions of
Safety First and Grupo Lanlimp in November, and of CT Group in
December, which generated combined revenue of GBP97 million in
2022.
Commenting on today's announcement, Frank van Zanten, Chief
Executive Officer of Bunzl, 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 years. 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 c.GBP1.7bn to acquisitions, reflecting a
step-up in our spend, and with our pipeline remaining active and
supported by our strong balance sheet."
Enquiries:
Bunzl plc Teneo
Frank van Zanten, Chief Executive Martin Robinson
Officer Olivia Peters
Richard Howes, Chief Financial Tel: +44 (0)20 7353 4200
Officer
Sunita Entwisle, Head of Investor
Relations
Tel: +44 (0)20 7725 5000
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