Bunzl H1 Profit Rises, Lifts Dividend; Backs FY21 View – Quick Facts

Distribution and outsourcing Group Bunzl plc (BZLFY.PK,BNZL.L) Tuesday reported that its first-half profit before income tax increased 12.3 percent to 275.7 million pounds from last year’s 245.4 million pounds.

Basic earnings per share were 63.3 pence, compared to 55.6 pence last year.

Adjusted profit before income tax was 338.4 million pounds, compared to 306.8 million pounds last year. Adjusted earnings per share were 77.7 pence, compared to prior year’s 70.1 pence.

Revenue edged up 0.4 percent to 4.87 billion pounds from last year’s 4.85 billion pounds. Revenue grew 6.3 percent at constant currency rates.

Further, the Board recommended an interim dividend of 16.2 pence, which represents 2.5 percent growth on the 2020 interim dividend.

Looking ahead, Bunzl said its outlook for 2021 is unchanged.

The company continues to expect, at constant exchange rates, underlying revenue to be moderately higher than the pre-pandemic period in 2019.

Bunzl expects future growth to be supported by a recovery in the base business and economic activity, enhanced hygiene trends and our differentiated offering of sustainable and responsible solutions.

With 2021 continuing to reflect pandemic-related dynamics, the company expects to see a further normalisation of Group operating margins in 2022 to more historical levels.

Separately, Bunzl said it has recently completed two further acquisitions. In July, the company completed the acquisition of Proin Pinilla, a safety distributor to end-users in Spain, with a focus on personal protection equipment or PPE and specialising in workwear. The business generated 15 million pounds of revenue in 2020.

In addition, Bunzl completed the acquisition of Arprosa in July, which also distributes PPE to end-users in Spain. The business generated 7 million pounds of revenue in 2020.

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