(Alliance News) - Bunzl PLC said it would be continuing with its annual guidance after reporting quarterly sales growth in its trading update on Thursday.
For the third quarter beginning June 30, the London-based distribution services company reported revenue growth of 19% at actual exchange rates and 8.7% at constant exchange rates from the last quarter. This compared to growth rates of 7.8% and 13% respectively for the same period last year.
Underlying revenue growth was 6.1%, with one fewer trading day than the year prior, negatively impacting revenue by 1.3%.
Bunzl attributed this result to the base business, which benefited from inflation as expected and contributed 10% of growth.
It said this was partially offset by an expected decline in sales of the top Covid-19 related products, which impacted underlying revenue by 4.3%.
In October, Bunzl aquired Enviropack Ltd, a London-based packaging supplies company with revenue of GBP7.0 million generated in the 12 months to August 2022.
It said the purchase was aligned with its focus on supporting customers transition to packaging "that is better suited to a circular economy".
Acquisitions contributed further growth of 3.9% in the third quarter, compared to 4.3% a year prior.
"Our strong performance over the quarter continues to demonstrate the strength and resilience of the Bunzl business model, underpinned by our value-added offering for customers," said Chief Executive Officer Frank van Zanten.
"Our commitment to reliably provide essential products and innovative solutions to our customers, our diversified portfolio, and our compounding growth strategy are all factors which contribute to our expectation of continued resilience."
Bunzl's guidance remains unchanged at constant exchange rates. The group said it expected "very good" revenue in 2022, driven by acquisitions and organic revenue growth.
It still expects operating margins to be higher than historical levels.
Bunzl shares were trading 1.6% lower at 2,735.00 pence each in London on Thursday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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Bunzl (BNZL)