Bunzl sees flat underyling revenue growth in H1

Specialist international distribution and services group Bunzl said it expected underlying revenue growth in the first half of the year to be broadly flat.

It added that group adjusted operating margin was expected to be around the same as the first six months of 2022.

Revenue was expected to increase by 4 - 5% at actual exchange rates, and up to 1% on a constant currency basis.

“Growth at constant exchange rates is expected to be driven by acquisitions, although partially offset by the impact of the UK healthcare disposal,” Bunzl said on Thursday.

It added that underlying revenue in North America was expected to decline moderately, driven by volume weakness in its foodservice sector, some of which is anticipated to be temporary, and with reducing benefit from inflation over the period.

“Inflation is expected to drive good underlying revenue growth in Continental Europe and strong growth in UK & Ireland. Underlying revenue growth in Rest of the World is expected to be impacted by a decline in Covid-19 related sales.”

Reporting by Frank Prenesti for Sharecast.com