Bunzl third-quarter revenue up 11%, eyes more acquisitions
Distribution and outsourcing group Bunzl reported a rise in third-quarter revenue on Tuesday as it continues to eye further acquisitions.
In a trading update for the period since 30 June, the company said its overall performance is consistent with expectations at the time of the half-year results in August, with revenue at constant exchange rates up 11% compared to the same quarter a year ago. Bunzl attributed the performance to improved underlying growth of between 5% and 6% and a 6% impact from acquisitions, partly offset by the effect of fewer trading days.
The increase in underlying revenue growth is mostly down to the previously announced additional business won in North America towards the end of last year, albeit at lower margins.
Bunzl said the consultation process with the relevant works councils for the proposed acquisition of the Hedis group of companies in France - announced in July - has been completed and the final sale and purchase documentation has been entered into. It expects the deal to complete by the end of the year, subject to the approval of the French competition authority.
“Growth through acquisitions is an important part of the ongoing strategy of Bunzl,” it said, adding that it has bought or agreed to buy 11 businesses so far this year for around £550m.
“With an active pipeline and ongoing discussions taking place, the company expects to make further acquisitions over the coming months.”