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Bunzl revenue up 7% in Q1, completes US and Dutch acquisitions
Distribution and outsourcing group Bunzl posted a jump in first-quarter revenue on Wednesday as it announced the completion of acquisitions in the US and the Netherlands last month.
In an update for period since end of December 2017, Bunzl said overall trading has been consistent with expectations at the annual results, with revenue up 7% at actual exchange rates and 14% at constant exchange rates.
The company saw underlying revenue growth of around 6%, mostly due to the additional grocery business won, albeit at lower margins, in North America towards the end of 2016. However, this is expected to return to more normal levels during the rest of the year as the additional NA business has now been fully absorbed.
In addition, Bunzl said it has completed the acquisition of Michigan-based Monte Package Company, which is engaged in the distribution of packaging products to fresh food growers and packers. It has also bought Dutch hygiene solution services provider QS Nederland.
Chief executive Fran van Zanten said: "The purchase of Monte has further enhanced our business in North America serving the agriculture sector while the acquisition of QS complements and extends our existing cleaning and hygiene supplies business in the Netherlands. We are pleased to welcome the employees of both businesses to the group."
Also on Wednesday, the company announced that Patrick Larmon, an executive director and chief executive officer of the Bunzl NA business area since 2004, will be retiring with effect from 31 December 2018. He will be succeeded in his role as CEO of NA by James McCool, who joined the group in 1998.
At 0805 BST, the shares were up 1.5% to 31.07p.