Bunzl sees 2022 revenue 'slightly' higher thanks to acquisitions
Bunzl said on Wednesday that revenue in 2022 is expected to be "slightly" higher than the previous year thanks to acquisitions.
The distribution and services group expects to deliver "another strong performance" in 2021, with underlying revenue of high single digit growth versus 2019. Bunzl said it has continued to benefit from acquisitions completed over the last two years, with 2020 and 2021 representing two of the most acquisitive years in its history in terms of committed spend.
Group revenue in 2021 is expected to increase by around 2% on the year at actual exchange rates and by 7% at constant exchange rates. "
At constant exchange rates, underlying revenue growth is expected to reflect a strong recovery in the base business, supported by inflation, partially offset by the anticipated decline in Covid-19 related orders with deflation on certain Covid-19 related products," it said. Group adjusted operating margin is expected to be just slightly ahead of historical levels.
"Looking ahead, whilst we see continued uncertainties relating to the extent of inflation and the effect of new Covid-19 variants, at constant exchange rates the group expects revenue in 2022 to be slightly higher than in 2021, driven by the impact of acquisitions completed this year."
Bunzl said continued recovery of the base business is likely to be offset by the further normalisation of sales of Covid-related products, albeit these are expected to remain ahead of 2019 levels.
Chief executive officer Frank van Zanten said: "The group has once again demonstrated the strength and resilience of the Bunzl business model, and the power of our global supply chains and entrepreneurial people who continue to reliably support customers despite supply chain disruptions.
"Not only has the group delivered strong underlying growth over the pandemic to date, we have also invested approximately £900m into acquisitions over the last two years, funded by the group's strong cash flow. Our acquisition pipeline remains active, supported by the strength of our balance sheet. Whilst we expect some continued normalisation of revenue mix in 2022, the performance since the start of the pandemic has only reinforced my confidence in our strategic focus and compounding growth model."