FX.co ★ Bunzl Q3 Group Revenue Rises; Confirms FY24 View

Bunzl Plc, the UK-based distribution and outsourcing firm, announced on Thursday that its third-quarter Group revenue rose by 2% on a reported basis and 5.4% when adjusted for constant exchange rates.

In the trading update covering the period from June 30 onward, Bunzl noted a 1.2% decline in underlying revenue. However, this represents an expected improvement from the previous quarter as underlying revenue trends are showing signs of recovery.

The company reported modest year-on-year volume growth. This growth was bolstered by a stronger performance in the U.S. foodservice redistribution sector, which contributed to increased volumes in North America.

Bunzl’s operating margin during the quarter met expectations, setting a solid foundation for the 2024 outlook. The company also maintained its fiscal 2024 guidance, anticipating robust revenue growth at constant exchange rates, fueled by acquisitions completed earlier in the year.

Furthermore, Bunzl projects that its adjusted operating profit for 2024 will see a significant increase compared to 2023, with the Group operating margin expected to modestly exceed last year’s level.

Frank van Zanten, Bunzl’s Chief Executive Officer, commented, “Bunzl has achieved another period of strong growth, highlighting the continued strength of our compounding strategy and resilient business model.”