Bunzl PLC (LON:BNZL) posted an increase in full year pre-tax profit as the disposable products company’s revenues grew on the back of organic growth and acquisitions.
Adjusted pre-tax profit rose to £478.2mln in the year to 31 December from £411.2mln the previous year, while revenue climbed to £7.4bn from £6.5bn.
The North America business, which accounted for 59% of group revenue, achieved a 3% increase in revenue to £4.4bn. The growth was driven by acquisitions and an increase in contract wins in the grocery sector.
In Continental Europe revenue rose 10% to £1.4bn. The division, also supported by acquisitions, represented 18% of group revenues.
The UK & Ireland, which was 15% of total revenue, experienced a poor performance in hospitality that led to a 2% decline in revenue to £1.1bn. The Rest of the World saw an 11% gain in revenues to £624.1mln, as expansion in Latin America offset challenging market conditions in Australasia. The unit accounted for 8% of group revenue.
The company lifted its full year dividend to 42p per share from 38p.
“Looking forward, against the backdrop of mixed macroeconomic and market conditions, we believe that our well positioned portfolio of international businesses and improving organic growth rates, recent customer wins and a promising acquisition pipeline will lead to continued overall growth for the group,” said chief executive Frank van Zanten.
Alongside its results, Bunzl announced it was expanding into Singapore with the acquisition of LSH, a supplier of personal protection equipment to the oil and gas, construction, pharmaceuticals and industrial sectors. Revenue in LSH in 2016 was 9mln Singapore dollars.
Shares in Bunzl rose 1.89% to 2,212p in morning trade.