Distribution and outsourcing group Bunzl has announced a year-on-year group revenue increase of six per cent for its third quarter in a trading statement released today.
The company reports that this improvement is due to underlying growth of about 3.5 per cent compared to the same period last year, as well as the result of acquisitions.
Bunzl provides items such as food packaging, point of purchase displays and cleaning & hygiene supplies to a number of well-known retailers in both the grocery and non-food sectors.
Compared to the same periods last year, group operating margin has improved in both the third quarter and the year to date.
International results are outperforming the UK however, with North America a particularly strong area for the group, and this quarter saw underlying revenue growth at a similar level to the first half, while the operating margin remains stable.
In other markets, the combination of good underlying revenue growth, operating margin improvement and the positive impact from acquisitions and exchange has led to continued strong revenue and profit growth.
The group claims that acquisitions remain a key part of its strategy and points out that, in the year to date, it has announced nine acquisitions and invested more than £145 million acquiring businesses with annualised revenue in excess of £165 million.
Bunzl’s financial position remains unchanged and it said today that its strong cash flow and balance sheet provides flexibility during these tough economic conditions.
A statement read: “In spite of challenging economic conditions, the board is confident that Bunzl’s geographically diversified business, its market leading positions in relatively resilient sectors and the impact from acquisitions should allow the group to deliver further growth.”