FTSE 250 distribution and services group Bunzl PLC (LSE:BNZL) offered a shot of optimism on Thursday, stating that adjusted operating profit is projected to surpass prior guidance for the year ending 31 December.
Boring Bunzl anticipates its 2023 revenue to align closely with the previous year's figures at constant exchange rates, despite various challenges, including the disposal of its UK healthcare business and a post-pandemic market normalisation.
To be precise, group revenue for 2023 is forecast to be one to two percent lower than in 2022, primarily due to said disposal.
However, Bunzl remains confident about its financial health, expecting moderate growth in its adjusted operating profit and a slight improvement in operating margins, surpassing the previous record.
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Bunzl's £1.7 billion of strategic acquisitions over the past four years has been a cornerstone of its growth strategy.
In 2023, the company took over Melbourne Cleaning Supplies in Australia, Flexpost in North America and Miracle Sanitation Supply in Manitoba, Canada.
These deals followed the acquisitions of Safety First, Grupo Lanlimp and CT Group, which collectively contributed £97 million in revenue in 2022.
Chief executive Frank van Zanten stated in a press release: “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.”