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(Sharecast News) - Distribution and services group Bunzl said on Tuesday that it had delivered "a good performance" in the third quarter, with operating margins expected to be broadly flat yearonyear, demonstrating the "resilience" of the business.
Quarterly group revenues grew by 3.1% at constant exchange rates and broadly the same at actual exchange rates, while underlying revenues increased by 3.7%, supported by both inflation, reflective of year-on-year product cost increases, and volume growth, which continued to be driven by "a strong performance" in its North American distribution business.
Bunzl said acquisitions contributed 0.4% to revenue growth, while fewer trading days in the period impacted revenue by 1.1%. Operating margins were in line with internal expectations, but unchanged from last year's 7.6%.
The FTSE 100-listed firm said it continues to perform in line with upgraded expectations and reiterated its full year outlook, with the group continuing to expect "modest underlying revenue growth", supported by some inflation, alongside a small benefit from acquisitions. It also expects net adjusted finance expenses of £125m to £130m and a full year effective tax rate of roughly 26%.
Bunzl added that it was progressing with its £500m share buyback programme announced at the half year and has now completed approximately £225m of the programme.
Chief executive Frank van Zanten said: "Bunzl has delivered another quarter of good underlying revenue growth, with continued volume growth and effective management of inflation in volatile markets demonstrating the resilience of our business. Our performance remains consistent with our expectations and we reiterate our guidance for the full year.
"We continue to expect 2026 to be a foundation for future profit growth and we are confident that the strengths of the Bunzl model, with our scale advantage, entrepreneurial culture, strong cash generation and balance sheet, will deliver consistent compounding growth in the medium-term."
As of 0905 BST, Bunzl shares were down 3.27% at 2,718p.
Reporting by Iain Gilbert at Sharecast.com
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