Bunzl PLC (LSE:BNZL) has updated its guidance, with "very strong" revenue growth and better margins expected due to positive contributions from acquisitions.
The FTSE 100-listed specialist distribution group said revenue in the first half is expected to increase roughly 16% year-on-year, with inflation driving underlying revenue growth, offset in part by the continued normalisation of sales of Covid-19 related products.
Previously, it had guided to "moderate" revenue growth for 2022, with acquisitions supported by a "slight increase" in organic revenue.
Chief executive Frank van Zanten said acquisition momentum "remains strong, with our active pipeline supported by a strong balance sheet".
While Covid-19 related products are expected to continue to grow at an above-2019 rate, the company expects operating margin to be slightly higher than historical levels.
Revenue growth has remained strong in North America and Continental Europe, while the Rest of the World region's growth has been more moderate, with strong growth in Asia Pacific partially offset by a decline in Covid-19 related sales in Latin America.
Operating margin has continued to improve in the UK & Ireland.
Shares were up 0.5% at 2,684p in early trades.