Bunzl PLC on Tuesday reported its 3Q trading statement, with group revenue 7.8% higher year-on-year at actual exchange rates, an increase of 13.0% at constant exchange rates.
Acquisitions contributed revenue growth of 4.3% at constant exchange rates, while a greater number of trading days than the comparable period in 2020 further benefited revenue growth by 6.2%. The company expects that this will “unwind in the fourth quarter.”
Underlying revenue growth at constant exchange rates was 2.5%. Group adjusted operating margin was impacted by ongoing deflation in certain COVID-19 related products
The company says its business model has delivered “strong overall growth against a background of continuing pandemic-related challenges.”
Within underlying revenue growth of 2.5%, the strong recovery in the base business contributed underlying sales growth of 12%, with broad strength across business areas and continued support of product inflation particularly in North America.
That growth was largely offset by a 9.4% impact on underlying growth from a decline in sales of top eight COVID-related products, which are primarily own brand.
Underlying revenue for the third quarter was approximately 10% higher than the comparable 2019 period.
Bunzl also announced that, at the end of September, it completed the acquisition of Intergro LLC, a distributor of agricultural supplies to commercial growers in the eastern U.S.
“At our recent Capital Markets Day, as well as providing insights into the opportunity that sustainability presents to Bunzl, we highlighted the strength of our compounding strategy which has delivered strong shareholder returns for many years,” Bunzl CEO Frank van Zanten said. “This track record of success continues with another good trading performance in Q3 and the acquisition of Intergro, which is our 11th acquisition year to date. Intergro is complementary to our existing agricultural business and broadens the Group’s product offering to customers. Our acquisition pipeline remains active, supported by the strength of our balance sheet.”
Last month, Bunzl acquired McCue Corp., a Boston-based safety business and a medical supplies distributor with operations in Australia and Singapore.