DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5

Bunzl Quarterly Revenue Growth Slows On North America Weakness

By Steve Wynne-Jones
Share this article
Bunzl Quarterly Revenue Growth Slows On North America Weakness

Business supplies distributor Bunzl said on Wednesday first-quarter growth had slowed as grocery and retail business in its biggest market North America remained sluggish, and posted a small rise in group revenue.

Bunzl shares fell 10% in early trade after the company's total revenue saw a mere 2.5% rise at constant currency, compared with a 14% growth a year earlier.

Underlying revenue growth in North America was about 1% due to a lagging grocery and retail business, which was dented by price inflation and weak demand, the company said.

Slower Growth

The company, which has operations in about 30 countries, also blamed slower growth on wider economic conditions across nations it operates in.

JPMorgan said the slowdown was not due to any contract losses at the company, which supplies a disparate range of products from disposable tableware to packaging supplies, latex gloves and cleaning chemicals.

ADVERTISEMENT

Bunzl, which has made over 150 acquisitions since 2004, expanded into grocery and retail in North America with acquisitions but higher costs and lower margins have pressured the segment, also hurting its overall margins.

Bunzl, which supplies to customers in various sectors including government, healthcare and food service, also said it acquired Netherlands-based packaging supplies company Coolpack.

The company, known for making small acquisitions to boost the business and consolidate its fragmented end markets, also said potential acquisitions for the year was "promising".

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.