Stock Market News
Bunzl revenue up 7% in Q1, completes US and Dutch acquisitions
Distribution and outsourcing group Bunzl posted a jump in first-quarter revenue on Wednesday as it announced the completion of acquisitions in the US and the Netherlands last month.
In an update for period since end of December 2017, Bunzl said overall trading has been consistent with expectations at the annual results, with revenue up 7% at actual exchange rates and 14% at constant exchange rates.
The company saw underlying revenue growth of around 6%, mostly due to the additional grocery business won, albeit at lower margins, in North America towards the end of 2016. However, this is expected to return to more normal levels during the rest of the year as the additional NA business has now been fully absorbed.
In addition, Bunzl said it has completed the acquisition of Michigan-based Monte Package Company, which is engaged in the distribution of packaging products to fresh food growers and packers. It has also bought Dutch hygiene solution services provider QS Nederland.
Chief executive Fran van Zanten said: "The purchase of Monte has further enhanced our business in North America serving the agriculture sector while the acquisition of QS complements and extends our existing cleaning and hygiene supplies business in the Netherlands. We are pleased to welcome the employees of both businesses to the group."
Also on Wednesday, the company announced that Patrick Larmon, an executive director and chief executive officer of the Bunzl NA business area since 2004, will be retiring with effect from 31 December 2018. He will be succeeded in his role as CEO of NA by James McCool, who joined the group in 1998.
At 0805 BST, the shares were up 1.5% to 31.07p.
In an update for period since end of December 2017, Bunzl said overall trading has been consistent with expectations at the annual results, with revenue up 7% at actual exchange rates and 14% at constant exchange rates.
The company saw underlying revenue growth of around 6%, mostly due to the additional grocery business won, albeit at lower margins, in North America towards the end of 2016. However, this is expected to return to more normal levels during the rest of the year as the additional NA business has now been fully absorbed.
In addition, Bunzl said it has completed the acquisition of Michigan-based Monte Package Company, which is engaged in the distribution of packaging products to fresh food growers and packers. It has also bought Dutch hygiene solution services provider QS Nederland.
Chief executive Fran van Zanten said: "The purchase of Monte has further enhanced our business in North America serving the agriculture sector while the acquisition of QS complements and extends our existing cleaning and hygiene supplies business in the Netherlands. We are pleased to welcome the employees of both businesses to the group."
Also on Wednesday, the company announced that Patrick Larmon, an executive director and chief executive officer of the Bunzl NA business area since 2004, will be retiring with effect from 31 December 2018. He will be succeeded in his role as CEO of NA by James McCool, who joined the group in 1998.
At 0805 BST, the shares were up 1.5% to 31.07p.
Related share prices |
---|
Bunzl (BNZL) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price