24 April
2024
BUNZL Q1 TRADING
STATEMENT
RESULTS AS EXPECTED, GUIDANCE
UNCHANGED
Bunzl plc, the specialist
international distribution and services Group, today announces its
trading statement for the period since 31 December 2023.
Bunzl's resilient business model
continues to perform well, following its strong performance over
recent years. Adjusted operating profit for the quarter was in line
with expectations and the Group maintains its profit guidance for
the year.
Group revenue in the first quarter
declined by 2.4% at constant exchange rates, with underlying
revenue, which is organic revenue adjusted for trading
days1, declining by 5.4% as expected.
This was mainly driven by volume reduction in our US foodservice redistribution business, the ongoing impact from transitioning customer specific
inventory in our US retail business, and deflation. Acquisitions contributed growth of 2.9% at constant
exchange rates. Overall, at actual exchange rates, Group revenue
declined by 5.9%. Operating margin over the quarter was strong,
supporting our outlook for the year.
The Group's guidance remains
unchanged2 from our FY results
announcement. The Group continues to expect to deliver slight revenue growth in 2024,
at constant exchange rates, driven by acquisitions already
completed in 2023 and 2024; with underlying revenue declining
slightly. Group operating margin is
expected to be slightly below the record level reported for
2023.
Following the Group's announcement
in February that it has signed an agreement to acquire Nisbets, the
UK Competition and Markets Authority has indicated in a response to
a briefing paper from Bunzl that it has no further questions on the
transaction. The acquisition is still subject to clearance by the
Irish competition authority which is expected during the first half
of 2024. At the end of February, Bunzl completed its anchor
acquisition in Finland of Pamark. In addition, the Group has sold
its business in Argentina to the management team. This safety
business had a total revenue in 2023 of c.£3 million.
Commenting on today's announcement,
Frank van Zanten, Chief Executive Officer of Bunzl,
said:
"I am pleased with the strategic
progress that we continue to make after achieving a strong margin
performance in 2023. We are taking appropriate action to pursue the
opportunities for volume growth in our foodservice redistribution
business in North America and this focus on organic growth,
alongside our ongoing actions to further improve profitability and
returns will enhance the Group's prospects over the medium term.
After a strong start to the year for acquisitions, our pipeline is
active and our balance sheet remains strong."
Enquiries:
Bunzl plc
Frank van Zanten, Chief Executive
Officer
Richard Howes, Chief Financial
Officer
Tel: +44 (0)20 7725 5000
|
Teneo
Martin Robinson
Olivia Peters
Tel: +44 (0)20 7353 4200
|
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1.
Net of the benefit of growth in excess of 26% per
annum in hyperinflationary economies, largely in Turkey, which
contributed a small decrease of 0.1%
2.
The guidance does not include the acquisition of
Nisbets, however it does now include the Pamark acquisition, which
was completed at the end of February 2024