Bunzl share price: Full-year revenue rises 5 percent
Bunzl (LON:BNZL) has this morning updated investors on its full-year results, posting a five-percent surge in its revenue for the year ended December 31. Separately, the company has announced that it has completed two further acquisitions in Brazil and the US and has entered into an agreement to acquire a business in Turkey.
**Highlights from Bunzl’s results statement”**
· Record acquisition spend of £327 million on 22 businesses, including the acquisition of Dental Sorria announced today, with entry into two new countries, Turkey and Austria
· Good increases in revenue, adjusted operating profit* and adjusted earnings per share*
· Group operating margin of 7.0% up 10 basis points at constant exchange rates
· Operating margins up in North America, Continental Europe and UK & Ireland with the margin down in Rest of the World
· Continued strong cash conversion with operating cash flow† to operating profit* of 97%
· Operating cash flow† up 9% to £442.6 million
· Long track record of dividend growth continues with an increase of 7% in the dividend for the year
Commenting on today’s results, Michael Roney, Chief Executive of Bunzl, said:
“I am pleased to report that Bunzl has once again delivered a good set of results with adjusted operating profit and earnings per share up 7% at constant exchange rates as a result of the continued successful implementation of the Group’s consistent and proven strategy.
Following on from a record year for acquisitions in 2015, we have announced further acquisitions today and, with a promising pipeline, we expect to complete additional transactions as the year progresses. We believe that Bunzl’s strong competitive position, the impact of the significant acquisition spend in 2015 and the opportunities to consolidate our fragmented markets further will lead to continued growth in 2016.”
Against the background of variable economic conditions, Bunzl’s strong competitive position, the impact of the significant acquisition spend in 2015 and the opportunities to consolidate our fragmented markets further are together expected to lead to continued growth in 2016.
In North America, the combination of recent acquisitions and underlying volume growth should result in a good performance despite the impact of price declines in plastic resin-based products. In Continental Europe, we expect to see a further strong performance due to both organic growth and the effect of recent acquisitions. In UK & Ireland, progress in 2016 will be held back principally due to pressure in the business serving the grocery and retail sectors. Rest of the World will see a strong benefit from recent acquisitions, although the outlook for both economic growth in the relevant markets and for exchange rates, particularly in Brazil, remains uncertain.
The pipeline of potential acquisitions remains promising. Discussions are continuing with a number of potential targets and we expect to complete further transactions as the year progresses.
The Board believes that the prospects of the Group are positive due to its strong market position and our ability to grow the business both organically and through acquisition.
As of 07:08 GMT, Monday, 29 February, Bunzl plc share price is 1,935.00p.