Distribution and outsourcing group Bunzl, which supplies not-saleable products to grocery and non-food retailers, has today said that its business operations in the UK and Ireland continue to be hit by difficult trading conditions.
Revenues for the six months ending June 30th 2011 are below the level recorded during the same period in 2010 but its profits are similar year-on-year, according to the company’s pre-close statement.
Overall trading at the group remains encouraging though, with its North American market performing particularly well over the course of the half-year.
“At constant exchange rates group revenue is expected to have increased six per cent, due to underlying growth of three per cent and the positive impact from acquisitions, with a slight improvement in operating margin,” it said.
“After adverse currency translation movements, the revenue growth rate is expected to be four per cent.”
Bunzl’s underlying revenue growth in North America was at approximately 4.5 per cent, while operating margins are similar to the comparable period last year. In Continental Europe underlying revenue growth rate for the group improved to more than four per cent.
Bunzl provides items such as food packaging, point of purchase displays and cleaning & hygiene supplies for an array of businesses working in the retail industry, including department store group Selfridges and leading grocer Asda.