Bunzl's revenues and earnings rose in the six months to the end of June and the group announced that it has completed two further acquisitions in Canada and has entered into an agreement to acquire a business in Hungary.
Bunzl reports a good set of results against a background of challenging macroeconomic and market conditions in many of the countries and sectors in which it operates.
Overall currency translation movements, principally due to the weakening of sterling against the US dollar and the euro which was partly offset by the strengthening of sterling against the Brazilian real and the Canadian dollar, increased the key reported group growth rates at actual exchange rates by 4%.
Group revenue for the first half of 2016 increased to £3,446.8 million (2015: £3,135.2 million) and adjusted operating profit (being operating profit before customer relationship amortisation and acquisition related costs) was £235.1 million (2015: £208.4 million). Adjusted earnings per share were 46.2p (2015: 41.4p).
At constant exchange rates revenue increased 6% and adjusted operating profit rose by 9%. The Group operating margin improved from 6.6% to 6.8% at constant exchange rates, with adjusted earnings per share up 8% on the same basis.
The board has decided to increase the interim dividend by 11% to 13.0p. Shareholders will again have the opportunity to participate in our dividend reinvestment plan.
Thew group also announced that it has completed two further acquisitions in Canada and has entered into an agreement to acquire a business in Hungary.
Plus II Sanitation Supplies Inc, which is based in Montreal, is principally engaged in the supply of a broad range of cleaning & hygiene related products to distributors serving the janitorial, foodservice and industrial sectors across Canada. Revenue in 2015 was C$32 million.
Apex Sanitation Products Ltd is based in Toronto and distributes similar products, and provides some related maintenance and training services, to end user customers operating in the facilities management, education, healthcare and government sectors in Canada.
Revenue in 2015 was C$12 million. Both businesses were acquired in July.
During July Bunzl also entered into an agreement to purchase Silwell Kft which had revenue in 2015 of HUF2.7 billion (c.£6 million). Based in Budapest, the business supplies a variety of disposable foodservice items both to distributors and end users operating in the hotel, restaurant and catering sectors in Hungary. The acquisition is expected to be completed at the end of September.