Bunzl Plc on Tuesday raised its 2022 group operating margin outlook, as the British business supplies distributor benefits from demand for its cheaper, high-margin products from inflation-hit customers amid a cost-of-living crisis.
Bunzl, which supplies food packaging, latex gloves, work wear and stationery to businesses, said its first-half performance was driven by continued volume recovery as well as growth spurred by acquisitions over the past 12 months.
'We now expect group operating margin in 2022 to be higher than historical levels and only slightly lower than that achieved in 2021,' the company said in a statement.
The FTSE 100 firm, which has benefited from demand for COVID-related products since 2020, said growth of the base business was expected to be only partially offset by the further normalisation of sales of such items.
Its adjusted profit before tax for the six months ended 30 June rose more than 12% to £380.5 million (€445.8 million), while revenue grew 16%.
'Value-Added Business Model'
Chief executive officer of Bunzl, Frank van Zanten, said, "The strength of our first half results is testament to the dedication of our colleagues and the resilience of our value-added business model.
"Over the period, our teams have been agile in navigating substantial inflation and supply chain disruption, while supporting recovery in the base business and continuing to provide our customers with essential products and services that are crucial to their operations. Our good performance has also been enabled by the depth and flexibility of our global supply chains."