Bunzl PLC (LSE:BNZL)'s revenue fell 8.8% in the third quarter as sales of Covid-related products continued to drop and it took a hit from the weakness of the pound.
However, full-year guidance for adjusted operating profit was maintained by the FTSE 100-listed supplier of basic products for the grocery, hospitality, retail and healthcare industries, which said the performance was in line with its expectations.
Two more bolt-on acquisitions were announced, the 13th and 14th of the current year: Brazilian surgical devices supplier CT Group, and Ireland-based bollards and speedbumps specialist Pittman Traffic & Safety.
Revenue for the quarter was down 4.8% if currency swings were ignored, while the sale of its UK healthcare business removed another 1.3% from the total, and one fewer trading day than the same quarter last year reduced it by a further 0.8%, while previous acquisitions added a 2.0% uplift.
On the plus side, operating profit margin was “very strong”, in fact “substantially higher” than pre-pandemic 2019, and slightly ahead of the group's expectations.
Chief executive Frank van Zanten expressed confidence in Bunzl’s ability to sustain a higher operating margin compared to pre-pandemic levels, supported by recent acquisitions.