British business supplies distributor Bunzl Plc said on Thursday it expected higher annual revenue, benefiting from red-hot inflation and acquisitions in the past year.
The company, which supplies food packaging, latex gloves, work wear and stationery to businesses, said it was upgrading its annual outlook, as revenue for the first-half of the year ending June 30 is expected to increase by 12-13%.
Bunzl, with operations in 31 countries and serving sectors including grocery, foodservice and healthcare, said first-half adjusted operating margins is expected to be slightly higher than historical levels.
Countries across the globe are experiencing soaring inflation, as prices of everything from fuel to packaging rise due to supply-chain disruptions and the Ukraine conflict.
Its key markets North America and Continental Europe maintained strong revenue growth and margins in the UK and Ireland continued to improve.
The company, which has benefited from demand for COVID-19 related products since 2020, said sales of such items have normalised but remained ahead of 2019 levels.
Shares of Bunzl were up 1.7% in early trade.
Frank van Zanten, chief executive officer of Bunzl, said, “Bunzl has delivered another period of strong growth. We continue to demonstrate the strength of our business model, supported by the depth and resilience of our supply chains and the agility of our people who have responded to the inflationary environment so successfully.
“Our acquisition momentum remains strong, with our active pipeline supported by a strong balance sheet.”
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