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Bunzl's interim management statement released
Bunzl, the international distribution and outsourcing Group, yesterday announced its interim management statement for the period since 31 December 2011.
Overall trading continues to be strong and consistent with expectations at the time of the annual results announcement in February. At constant exchange rates, Group revenue in the first quarter has increased 7% compared to the same period last year due to underlying revenue growth of 4% and the positive impact from acquisitions. Group operating margin has improved largely due to the 2011 acquisitions.
In relation to the first quarter:
* In North America underlying revenue growth continues to be strong, at a similar level to the second half of 2011, and the operating margin is stable.
* In Continental Europe, although underlying revenue growth is at the same level as the second half of 2011, the economic environment in the region continues to be weak. The acquisitions completed last year have led to strong revenue growth and an increase in operating margin.
* In spite of the sluggish economy in UK & Ireland, excluding the impact of the disposal of the vending business, revenue and profit have improved due to the impact of the acquisitions made in 2011.
* In Rest of the World the combination of strong underlying revenue growth and the impact from acquisitions has led to significant increases in revenue and profit.
* Acquisition growth continues to be a key part of the company's strategy. The pipeline for acquisitions is promising as discussions continue with a number of potential targets.
There has been no significant change in Bunzl's financial position during the period and the Group continues to have substantial funding headroom available. Bunzl's strong cash flow and balance sheet continue to give the Group the flexibility to consolidate the markets in which it competes.
The Board is confident that Bunzl will continue to develop well due to underlying growth and the impact from acquisitions.
T: 0207 725 5000
19th April 2012