Bunzl plc, the international distribution and outsourcing group, announced its interim management statement for the period since 31 December 2013.
Overall trading has been consistent with expectations at the time of the annual results announcement in February. At constant exchange rates group revenue in the first quarter has increased 5% compared to the same period last year with Group operating profit* up 10%. Operating margin has increased in three of the company’s business areas with margin in the fourth at the same level as last year. Underlying group revenue growth is at a similar level to the comparable period in 2013. The company’s results at actual exchange rates have been negatively affected by foreign exchange translation.
Acquisition growth continues to be a key part of the company’s strategy and Bunzl announced that it has completed three further acquisitions in Chile, the US and New Zealand.
The Company has acquired Tecno Boga SA, a leading supplier of own label protective footwear, principally to distributors, based in Santiago, Chile. Revenue in the year ended 31 December 2013 was CLP20 billion (c.£23 million).
Bunzl has also acquired the business of Plast Techs Enterprises Inc which is engaged in the sale of a variety of foodservice and cleaning and hygiene supplies to distributors throughout Southern California. Revenue in the year ended 31 December 2013 was US$24 million (c.£14 million).
Finally the Company has purchased the business of Nelson Packaging Supplies Limited. Based in Nelson, New Zealand, the business is principally engaged in the distribution of packaging and cleaning and hygiene supplies to end users in the commercial and industrial market sectors. Revenue in the year ended 31 March 2014 is estimated to be NZ$6 million (c.£3 million).
There has been no significant change in Bunzl’s financial position during the period and the Group continues to have substantial funding headroom available. Bunzl’s strong cash flow and balance sheet, together with a promising acquisition pipeline, should continue to give the Group opportunities to consolidate the markets in which it operates and deliver further growth.
Commenting on the acquisitions, Michael Roney, Chief Executive of Bunzl, said:
"Acquisition activity has continued at a good pace during the first quarter of the year with six acquisitions completed for a total committed spend of £80 million. Tecno Boga, which has an excellent reputation in the safety sector and specialises in the supply of products to the higher end of the market, represents a significant expansion of our operations in Chile, being a country that we entered with the acquisition of Vicsa Safety at the end of 2012. Plast Techs will complement our existing business in California and provide access to additional product lines. Although relatively small, the purchase of Nelson Packaging will provide additional scale to our business in New Zealand. We are pleased to welcome all employees of each of the companies to Bunzl."
* Before intangible amortisation and acquisition related costs.
