Bunzl Q3 Trading Statement:
Profit in-line with expectations; 2023 profit outlook maintained
Following Bunzl's strong performance over recent years and continued resilience, the Group continues to perform well. Adjusted operating profit over the quarter was in-line with expectations and the Group reiterates its 2023 adjusted operating profit growth outlook.
Group revenue in the third quarter declined by 4.8% at constant exchange rates, with underlying revenue, which is organic growth adjusted for trading days, declining by 4.7%, driven by a continued decline in Covid-19 related product sales; a reduced level of inflation benefit; and wider post-pandemic related normalisation trends which drove expected volume weakness consistent with the prior quarter. One fewer trading day than the comparable period negatively impacted revenue by 0.8%1. Acquisitions contributed growth of 2.0% at constant exchange rates, whilst the disposal of our
We reiterate our confidence in the Group's 2023 adjusted operating profit being moderately higher than in 2022 at constant exchange rates. We expect Group revenue, at constant exchange rates, to be slightly lower than in 2022, with the benefit of announced acquisitions offset by some organic decline, following strong organic growth in recent years, and a small impact from the
In
Towards the end of
Commenting on today's announcement,
"Our performance continues to highlight the strength and resilience of the Group's business model, with revenue over the quarter 29% higher, and operating margin substantially higher, than the comparable period in 2019 at constant exchange rates. I remain confident in our ability to sustain a higher operating margin compared to pre-pandemic levels, supported by the acquisitions we have made over the period. Furthermore, today we announce our 13th and 14th acquisitions of 2023, with a total year-to-date committed spend of more than £425 million. I remain excited by the Group's medium-term opportunities, which continue to be driven by our proven compounding growth strategy and active acquisition pipeline, supported by a strong balance sheet."
Enquiries: Bunzl plc Teneo Frank van Zanten, Chief Executive Officer
1 Net of the benefit of growth in excess of 26% per annum in hyperinflationary economies, largely in
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