16th Apr 2014 07:19
LONDON (Alliance News) - Distribution and outsourcing company Bunzl PLC Wednesday said its pre-items operating profit was up 10% in the first quarter of the year, driven by a 5% rise in revenue at constant exchange rates and higher operating margins in three of its four businesses.
In a trading update, the company said it had been hit by fluctuating exchange rates, but its underlying revenue growth was at a similar level to that of the first quarter of 2013.
It said the operating margin was flat in the fourth of its businesses, although it didn't identify the units. Its pre-items operating profit excludes amortisation and acquisition-related costs.
The acquisitive company said it had made another three acquisitions, in Chile, the US and New Zealand.
In Chile, it bought protective footwear maker Tecno Boga SA, which made revenue of about GBP23 million in 2013. In the US, it bought foodservice and cleaning and hygiene supplies business Plast Techs Enterprises Inc, which made about GBP14 million of revenue last year. It bought packaging and cleaning and hygiene supplies business Nelson Packaging Supplies Ltd in New Zealand. Nelson made revenue of about GBP3 million in the year to end-March.
It didn't give any financial details for the latest acquisitions.
"Acquisition activity has continued at a good pace during the first quarter of the year with six acquisitions completed for a total committed spend of GBP80 million," Chief Executive Michael Roney said in a statement.
Bunzl shares were up 0.7% at 1,585 pence early Wednesday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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