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Bunzl PLC on Wednesday said it expects to deliver strong growth in 2022, with revenue set to grow 17% year-on-year.
The London-based distribution services company said the expected revenue rise is due to ‘inflation driving underlying revenue growth and the impact of acquisitions further supplementing growth’. For 2021, Bunzl recorded total revenue of £10.29 billion, so a 17% increase would raise that above £12 billion.
Bunzl said the 2022 revenue increase would be 10% at constant currency.
Bunzl said its adjusted operating margin for 2022 is expected to be slightly ahead of prior guidance, and will be in line with 2021, when it was 7.3%, down from 7.6% in 2020.
Looking ahead to 2023, Bunzl expects revenue to grow slightly, with adjusted operating profit to be ‘resilient’. Adjusted earnings per share are expected to be ‘moderately’ lower from 2022, however. ‘Negotiations with our largest customer by revenue are ongoing,’ Bunzl noted.
Chief Executive Officer Frank van Zanten said: ‘Bunzl’s performance over the year has continued to demonstrate the strength and resilience of the Bunzl business model. Our teams have successfully navigated the inflationary environment and supply chain disruption experienced this year to ensure customers have reliably received the essential products they need.’
On Tuesday, Bunzl had announced four acquisitions, as well as the sale of its UK healthcare division, to generate a ‘small cash inflow’.
Bunzl shares were down 0.8% at 2,797.00 pence each on Wednesday morning in London.
By Xindi Wei, Alliance News reporter
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