Bunzl PLC on Monday reported robust annual results for 2021, and remains confident for its 2022 performance.
The London-based distribution firm said it continued to perform strongly during the virus pandemic, with continued growth in 2021, prompting the distribution firm to raise its dividend.
Shares were 5.7% higher in London on Monday morning at 2,918.00 pence each. The wider FTSE 100 index was down 1.2%.
For 2021, Bunzl posted a pretax profit of £568.7 million, up 2.3% from £555.7 million in 2020, on revenue of £10.29 billion, up 1.7% from £10.11 billion.
Bunzl declared a 57.0 pence annual dividend, up 5.4% from 54.1p paid out in 2020.
‘I am proud of the group’s performance during 2021 and how Bunzl continues to demonstrate the strength of its business model and strategy and also the entrepreneurial spirit of our people who have met the challenges of the pandemic and driven the business forward,’ Chief Executive Frank van Zanten said.
‘Those sectors most impacted by the pandemic, such as retail and foodservice, are recovering strongly, supported by inflation, and Bunzl continues to benefit from enhanced hygiene trends.’
Underlying Foodservice & Retail revenue growth was 16% in 2021, with Grocery up 9%. These two more than offset a 12% drop in Cleaning & Hygiene, Safety & Healthcare.
Looking ahead, Bunzl expects moderate revenue growth in 2022, driven by acquisitions completed in the past 12 months and supported by a slight increase in organic revenue.
A continued recovery of the base business is expected to be offset by the further normalisation of sales of Covid-19 related personal protective equipment, albeit these are expected to remain ahead of 2019 levels, it noted.
Bunzl also expects its operating margin in 2022 to be slightly higher than historical levels, as the mix of sector and product sales continues to transition to more typical levels.
‘Bunzl has further strengthened its value-added proposition through the pandemic and we look to the future with confidence given our consistent compounding growth strategy,’ van Zanten added.
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