Bunzl PLC on Tuesday said revenue and profit increased in the first half, as it announced two new acquisitions.
The London-based distribution services company reported that revenue increased 4.5% to £5.91 billion in the first half of 2023, from £5.65 billion the year prior. The firm noted that the sale of its UK healthcare business in December last year negatively impacted profit by 1.8%.
It said pretax profit grew 6.9% to £317.1 million, from £296.6 million a year ago.
The firm declared an interim dividend of 18.2 pence, increasing 5.2% to 17.3p. It said it is committed to maintaining dividend growth.
Bunzl shares rose 3.7% to 2,824.00p each on Tuesday morning in London.
The firm said it expects full-year revenue to be slightly higher than in 2022, boosted by acquisitions but partly offset ‘by a slight organic decline’. Bunzl has announced six acquisitions during the first half of 2023, and 12 in the year-to-date.
Chief Executive Frank van Zanten said: ‘I am pleased with our first half performance, with good adjusted operating profit growth and an operating margin significantly ahead of that achieved prior to the comparable period of 2019. The group’s performance continues to be supported by the strength of our customer-focused value proposition, including our sustainability expertise and range of innovative products and solutions, and the continued success of our acquisition strategy.’
In a separate announcement, the firm said it has acquired businesses in Poland and the Netherlands.
The company said it made its first acquisition in Poland, agreeing to purchase personal protective equipment distributor Safety First. Bunzl noted that completion of the acquisition is subject to competition authority clearance.
Meanwhile, in the Netherlands Bunzl acquired EcoTools.nl, a tool accessories and industrial consumables online distributor.
CEO van Zanten said: ‘I am pleased to announce two more additions to the Bunzl family today, taking our total to twelve acquisitions announced so far this year. I am particularly pleased that the acquisition of Safety First will be Bunzl’s first in Poland, increasing the total number of countries that we operate into 32. EcoTools is a fast-growing online distributor, which complements other online-focused businesses within our portfolio and further strengthens the group’s digital capabilities.’
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