Bunzl PLC (LSE:BNZL) held guidance for 2023 as it reported strong growth in revenue and profit in 2022 alongside two more bolt-on acquisitions.
For the year to 31 December 2022, revenue totalled £12.04bn, up 9.8%, statutory pre-tax-profits rose to £634.6mln, up 12% from £568.7mln, and basic earnings per share improved 6.8% to 141.7p from 132.7p.
Shareholders were rewarded with a 10% boost to the dividend to 62.7p.
The FTSE 100-listed distribution firm said revenue growth was driven by product cost inflation, volume recovery in the first half and growth from acquisitions.
Growth of the foodservice, retail and grocery sectors was particularly supported by significant product cost inflation, although the cleaning & hygiene, safety and healthcare sectors were impacted by the year-on-year decline in Covid-19 related sales.
Group revenues were further supported by 3.1% growth from the incremental impact of acquisitions, Bunzl said.
Looking ahead, the company kept 2023 guidance unchanged and said it expects revenue to be slightly higher than in 2022, driven by both organic growth and announced acquisitions, and partially offset by a small impact from the UK healthcare disposal.
Adjusted operating profit in 2023 is forecast to be “resilient”, with operating margin slightly higher than historical levels.
Bunzl also announced two further acquisitions. It is buying Arbeitsschutz-Express, a fast-growing online distributor of workwear and PPE in Germany, and Capital Paper, a distributor of foodservice packaging and consumables, cleaning & hygiene supplies, and industrial packaging products in Canada.