Bunzl boosts H1 profits and dividend despite currency turmoil
Bunzl
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16:40 18/04/24
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Strong performances in emerging and Western markets have helped packaging and cleaning supplies group Bunzl to lift underlying half-year profits and its dividend, although currency turbulence took its toll.
Bunzl said pre-tax profit in the six months to 30 June increased by 14% to £176.6m at constant exchange rates, although the rise was 5% at actual rates. Revenue also took a hit from currency volatility, rising 7% to £2.9bn at constant rates but falling 1% in actual terms.
In North America, revenue rose 5% to £1.6bn - down 3% at actual exchange rates - due to a good self-generated rise in revenue and the effect of acquisitions.
Continental European revenue rose 3% to £573.3m with operating profit up 9% to £50.1m. The UK & Ireland business boosted revenue by 5% to £507.8m and operating profit rose 13% to £33.7m. A recovery in the building industry lifted its cleaning and safety supplies business and its health business did well.
Rest of the world revenue increased 29% to £267.5m and operating profit rose 45% to £26.1m with the results benefiting significantly from the impact of acquisitions, particularly in Latin America.
Bunzl said it had made a good number of acquisitions this year and expected to complete a number of further acquisitions in the rest of the year.
"The board is confident that the group will continue to build the business," it said.
It hiked the interim dividend by a tenth to 11p. The shares rose 35p or 2.1% to 1665p.
PW