Bunzl PLC (LSE:BNZL) has said its operating margins in 2022 will be slightly ahead of previous guidance and in line with 2021 while revenues are expected to rise by 17% at actual exchange rates.
“The group is expected to deliver very strong growth over the year, continuing to reflect the resilience and strength of the Bunzl business model," the packaging firm said in a trading update.
The FTSE 100-listed company also revealed that “negotiations with our largest customer by revenue are ongoing.”
Looking ahead, Bunzl forecast revenue in 2023 would be slightly higher than in 2022, driven by both organic growth and acquisitions, and partially offset by a small impact from a previously announced disposal.
The company said it expects adjusted operating profit in 2023 to be resilient, with operating margin slightly higher than historical levels although adjusted EPS is expected to be moderately lower year-on-year due to higher interest rates and an increased effective tax rate.
In the statement, Bunzl CEO Frank van Zanten, said: “We have committed more than £280mln of spend to acquisitions over the year, with our pipeline remaining active and supported by our strong balance sheet."