The distribution giant's unglamorous model keeps delivering, with North America again the engine room of growth.
Bunzl (LSE: BNZL) has reiterated its full-year guidance after a third quarter in which group revenue rose 3.1% at constant currency and underlying revenue climbed 3.7%, with its North American distribution business once again doing the heavy lifting.
There was no dramatic share price reaction to report, but the update reassured investors who had been watching closely after Bunzl upgraded its half-year guidance earlier this year; the company said it remains on track for modest underlying revenue growth and a broadly stable operating margin for the full year.
Chief executive Frank van Zanten pointed to continued volume growth and effective management of inflation across volatile markets as evidence of the group's resilience, with the North America arm again the standout performer. Fewer trading days in the quarter acted as a modest drag on the headline revenue figure, though underlying momentum held firm.
Bunzl, which distributes everyday essentials ranging from packaging to safety equipment, used the update to confirm it has completed the acquisition of Blueleaf Care, a UK distributor serving care and nursing homes with annual revenue of £58m, extending its long-running strategy of bolt-on deals to broaden its reach into specialist end-markets.
The group also disclosed it has now completed around £225m of its planned £500m share buyback, underlining continued confidence in its cash generation. With guidance reiterated rather than raised, the focus for investors now shifts to whether North American momentum can be sustained into the final quarter and whether further bolt-on acquisitions will be added to the pipeline.
This report is based on Bunzl's announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: CHUTTERSNAP on Unsplash.