Bunzl Share Price Rose 2.77% on Its Pre-Close Trading Statement

The Bunzl plc (LON: BNZL) share price rose 2.77% after issuing its pre-close trading statement for the year ending 31 December 2023. The company upgraded its 2023 profit outlook and announced three further acquisitions. 

Bunzl, continuing its robust performance in recent years, is set to report solid annual results, with its adjusted operating profit expected to surpass previous forecasts. The Group's revenue for 2023 is projected to align closely with the 2022 figures at constant exchange rates despite excluding revenues from the recently disposed UK healthcare business.

This steady revenue is attributed to growth from new acquisitions, counterbalancing the anticipated decline in underlying revenue due to reduced COVID-19-related sales, diminishing inflation benefits, and broader post-pandemic normalisation trends, especially in North America.

Factoring in the healthcare business disposal, Bunzl's total Group revenue for 2023 is likely to be 1 to 2% lower than in 2022, with currency fluctuations having a negligible impact. 

For 2024, despite economic and geopolitical uncertainties, Bunzl anticipates some revenue growth, driven by recent acquisitions and a slight increase in organic growth, with the operating margin expected to remain comparable to 2023 levels and significantly higher than pre-pandemic figures.

In November 2023, the Group acquired Melbourne Cleaning Supplies, an Australian distributor of cleaning and hygiene products, which recorded AUD 18 million (£10 million) in revenue in 2022. 

Additionally, Bunzl acquired Flexpost, a North American distributor specialising in flexible signposts and bollards, in the same month, contributing USD 4 million (£3 million) in revenue in 2022.

Frank van Zanten, Bunzl’s Chief Executive Officer, said: “I’m pleased with the performance Bunzl has delivered this year, reflecting the dedicated efforts of our people in supporting our customers around the world. The Group is on track to deliver moderate adjusted operating profit growth, supported by a record operating margin, and we are guiding to further growth in 2024, continuing to build on the strong performance we have seen over recent years. Furthermore, we welcome three new complementary businesses to the Group today, taking the total acquisitions announced this year to 17. Over the last four years we have committed a cumulative c.£1.7bn to acquisitions, reflecting a step-up in our spend, and with our pipeline remaining active and supported by our strong balance sheet.”

Bunzl share price. 

Bunzl share price rose 2.77% to trade at 3212.0p from Wednesday’s closing price of 3125.5p.