22nd Oct 2019 08:30
(Alliance News) - FTSE 100-listed key products supply and distribution firm Bunzl PLC said Tuesday its 2019 expectations remained unchanged as underlying revenue growth continued to slow in tough markets.
For the three months ended September, revenue grew 4% on a reported basis with constant-currency growth of 0.5%. Underlying revenue was 1% lower after adjusting for the contribution of acquisition activity.
In 2018, Bunzl reported GBP424.8 million in pretax profit on revenue of GBP9.08 billion. In 2018, underlying revenue growth stood at 4.3% with reported growth at 6%.
The lower underlying revenue "primarily reflects the previously announced lower sales to a large grocery customer in North America due to account specific product specification changes and price deflation," Bunzl said in its statement.
Bunzl emphasised its expectations for 2019 remained unchanged despite the "slowing" underlying revenue growth as a result of the "impact of the continued mixed macroeconomic and market conditions across the countries and sectors in which the group operates."
Bunzl said its acquisition activity remained an "important part" of its ongoing strategy, after investing GBP100 million in new buys since the start of 2019. Its acquisition pipeline remains "active" and Bunzl said a number of discussions are currently taking place.
Shares in Bunzl were 3.3% lower at 1,931.50 pence in London on Tuesday.
By Ahren Lester; [email protected]
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