Bunzl Half-Year Report 2022
Highlights include:
- Strong revenue growth of 12.4% at constant exchange rates, driven by product cost inflation and continued volume recovery in the base business, and growth from acquisitions
- Adjusted operating profit* increase of 8.6% at constant exchange rates and rise in adjusted earnings per share* of 6.9%; Reported operating profit up 7.7% and reported basic earnings per share up 4.6%
- Adjusted operating profit 41% higher at constant exchange rates compared with the first half of 2019, demonstrating the strength and resilience of the Bunzl model
In the first half of 2022 revenue increased by 12.4% (16.1% at actual exchange rates) to £5,650.8 million. Within this,
underlying revenue growth was 9.3%, whilst acquisitions contributed revenue growth of 3.0% and excess growth in
hyperinflationary economies, largely in Turkey, contributed a small increase of 0.1%. There was no impact over the period from the number of trading days compared to the prior year period.
Whilst inflation in plastics, paper and chemicals continued to be strongest in North America over the period, inflation became more widespread in the first half of 2022, compared to the second half of 2021, and was also strongly supportive of performance in Continental Europe and UK & Ireland. The Group has managed the strong inflation well and successfully implemented product price increases. Our largest customers, particularly in North America, often have product price movements factored into agreements, whilst elsewhere regular price reviews are required. While inflation trends remained strong to the end of the period, product cost inflation has started to annualise in North America. However, the product cost inflation benefits in other regions lagged North America.
