Bunzl Reports Revenue Decline in Q3, Backs Full-Year Profit Target
Bunzl, the distribution and services group, announced a decline in revenue for the third quarter, largely due to a continued decrease in Covid-19 product sales. However, the company is maintaining its operating profit target for the full year.
According to Bunzl, revenue fell by 4.8% at constant exchange rates, with underlying revenue growth at 4.7%. This decline was primarily influenced by an expected weakness in volume resulting from the broader normalization following the pandemic.
Despite the decrease in revenue, Bunzl is confident in its adjusted operating profit outlook, which is projected to exceed the 2022 levels of £885.9 million ($1.08 billion). The company also anticipates achieving record levels of operating margin.
However, the expected revenue for this year is slightly lower than the £12.04 billion reported in 2022. Previously, Bunzl had anticipated slightly higher revenue compared to 2022.
Chief Executive Frank van Zanten expressed confidence in the company's ability to maintain a higher operating margin compared to pre-pandemic levels, thanks to strategic acquisitions made during this period.