Bunzl boosted by interim results

The price of shares in FTSE 100 distribution and services giant Bunzl (LON:BNZL) has climbed by 3.37% to 2,486p (as of 11:40 BST) after reporting a 22.4% improvement in pre-tax profits for the half year to 30th June. Revenues for the period were up by 7% despite the challenges caused by COVID and operating margins improved by 30 basis points. Acquisition activity has also continued and the company announced the proposed takeovers of MCR Safety and Abco Kovex today.

CEO Frank van Zanten commented: “Despite the unprecedented challenges experienced as a result of the Covid-19 pandemic during the first half of the year, these results have once again demonstrated the strength of our customer proposition and supply chain and the resilience of our business model and consistent and proven strategy. Throughout this period, a key priority has been the continued safety and wellbeing of people connected with our business including Bunzl colleagues, customers and suppliers. I have been greatly impressed by our tireless, dedicated and hardworking colleagues around the world as they have had to adapt their usual working practices to respond to the unprecedented demands placed on our business.

Looking forward, although there remains considerable uncertainty, we expect to face challenging trading conditions during the second half of the year. However the fundamental aspects of our business model remain attractive with the Group’s strong cash generation allowing us to maintain Bunzl’s long track record of dividend growth and continue our compounding strategy of consolidating the Group’s fragmented markets through focused acquisitions“.