28th Aug 2018 09:02
LONDON (Alliance News) - Bunzl PLC on Tuesday said it acquired its first business in Norway after its profit grew in the first half of 2018, boosted by acquisitions and new customer wins.
The FTSE 100-listed distribution company said pretax profit rose 8.5% to GBP197.3 million in the six months to the end of June from GBP181.9 million reported for the same period a year earlier, as revenue climbed by 5.5% to GBP4.34 billion from GBP4.12 billion.
On a constant currency basis, revenue rose by 12%.
Bunzl declared an interim dividend of 15.2 pence per share up 8.6% from 14.0p paid the year prior.
On a regional basis, revenue in North America grew by 10% to GBP2.46 billion, boosted by the impact of acquisitions.
The company's retail supplies unit benefited from the purchase of supply chain manager Diversified Distributor Systems LLC in May last year for an undisclosed sum. The acquisition complemented Bunzl's existing business by providing additional merchandising and delivery capabilities to retailers.
The agricultural sector also made good progress, driven by the acquisition of products distributor Monte Package Co in April, which has added a new product range and given Bunzl access to customers in new regions.
Revenue in the Continental Europe rose by 15% to GBP890.2 million, bolstered by five acquisitions completed last year and by the purchase of QS Nederland BV in April.
In UK & Ireland, revenue increased by 11% to GBP625.9 million, despite variable market conditions in the company's safety unit. Bunzl said it intends to invest in improvement of its digital service offerings.
Meanwhile, the grocery and retail segments have shown strong sales growth as a result of new customer wins and product range extensions with existing customers, Bunzl said.
In the Rest of the World division, revenue rose by 14% to GBP368.0 million, as trading conditions improved, the company said.
"Bunzl has delivered another good set of results," said Chief Executive Frank van Zanten.
"Looking forward to the rest of the year, the board is confident that the prospects for the group are positive and that the company will continue to develop the business and build shareholder value through a combination of organic growth and further acquisitions as the year progresses," added Frank van Zanten.
In a separate statement, Bunzl said it has acquired Oslo-based business Enor AS for an undisclosed sum.
Bunzl said the light catering equipment supplier operates through 11 locations across Norway. For the year to the end of 2017, it recorded revenue of NOK294 million, about GBP27 million.
"The acquisition of the Enor group is an exciting development for Bunzl as it represents our first acquisition in Norway and means that we now have operations in 31 countries globally," said Frank van Zanten.
Shares in Bunzl were trading 1.9% higher on Tuesday at 2,373.00 pence each.
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