Bunzl PLC (LSE:BNZL) said inflation helped boost sales in the first quarter and stuck to its forecast of "moderate revenue growth' in 2022.
Revenue for the first quarter rose 13.2% at actual exchange rates and 12.5% at constant exchange rates, according to the specialist international distribution and services company.
At constant exchange rates, underlying revenue growth (organic growth adjusted for trading days) was 11.0%, mainly driven by inflation. Its base business contributed 17% growth but this was partially offset by the expected decline in sales from the top 8 Covid-19-related products.
Fewer trading days than the comparable period negatively impacted revenue by 1.7% but acquisitions contributed further growth of 3.2% at constant exchange rates.
"Overall, inflation remained particularly supportive to our businesses in North America, while the UK & Ireland and Continental Europe delivered very strong growth compared to the prior year due to inflation and recovery of the base business," the trading update said.
"Continued recovery of the base business is expected to be partially offset by the further normalisation of sales of Covid-19 related products. We also expect group operating margin in 2022 to be slightly higher than historical levels."