Bunzl Q1 Report 2022

Bunzl’s diversified and resilient business model has delivered strong growth, with Group revenuein the first quarter up 13.2% at actual exchange rates and 12.5% at constant exchange rates. At constant exchange rates, underlying revenue growth which is organic growth adjusted for trading days was 11.0%, mainly driven by inflation, with fewer trading days than the comparable period  negatively impacting revenue by 1.7%. Acquisitions contributed further growth of 3.2% at constant exchange rates.

Underlying revenue growth of 11.0% was driven by continued momentum in the base business which contributed 17% growth, which significantly benefited from inflation. This was partially offset by the expected decline in sales from the top 8 Covid-19 related products which impacted underlying revenue by 6%, driven by product deflation compared to the prior year period. Overall, inflation remained particularly supportive to our businesses in North America, while the UK & Ireland and Continental Europe delivered very strong growth compared to the prior year due to inflation and recovery of the base business.

The Group’s guidance remains unchanged. At constant exchange rates the Group expects moderate revenue growth in 2022, driven by the impact of acquisitions completed in the last 12 months and supported by a slight increase in organic revenue. Continued recovery of the base business is expected to be partially offset by the further normalisation of sales of Covid-19 related products. We also expect Group operating margin in 2022 to be slightly higher than historical levels.