17th Apr 2019 07:57
LONDON (Alliance News) - Bunzl PLC on Wednesday said revenue in the first quarter rose 4% on the prior year, despite challenging market conditions and a slowdown in its North American operations.
The FTSE 100 international distribution company said first-quarter revenue increased 4% at actual exchange rates. At constant exchange rates revenue, adjusted for the impact of the number of trading days in the quarter, rose by 2.5%.
However, the rate of revenue growth slowed down during the quarter, the company said, due to "mixed macroeconomic and market conditions" across the countries in which the group operates.
In particular, Bunzl's business in North America experienced "slower underlying growth of approximately 1%" due to lower sales to customers in the grocery and retail sectors.
"There has, however, been good growth in the safety, processor, agriculture and convenience store sectors," Bunzl said.
It added: "The underlying revenue growth during the quarter in Continental Europe, UK & Ireland and Rest of the World overall was approximately 2%."
Furthermore, the company said it has acquired Dutch distributor Coolpack for an undisclosed amount.
Coolpack is engaged in the supply of specialist packaging to supermarkets and the pharmaceutical, food processor and foodservice sectors. In 2018, it generated revenue of EUR4 million.
"Growth through acquisitions to consolidate the markets in which the company operates is an important part of Bunzl's consistent and proven strategy," Bunzl added.
It concluded: "The pipeline of potential acquisitions is promising and, with ongoing discussions taking place, the company expects to complete further transactions as the year progresses."
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