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Bunzl Q1 revenues fall on weaker US volumes, customer destocking

Wed 24 April 2024 07:32 | A A A

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(Sharecast News) - International distribution and services group Bunzl said revenue in the first quarter fell 2.4% on a constant currency basis, driven by lower volumes in its US foodservice redistribution business, American retail customers clearing inventory and deflation.

Adjusted operating profit for the first three months of the year was in line with expectations and the group held its profit guidance for the year. At actual exchange rates, group revenue declined by 5.9%.

Bunzl said it continued to expect to deliver slight revenue growth in 2024 at constant exchange rates, driven by acquisitions already completed in 2023 and 2024; with underlying revenue declining slightly. Group operating margin is expected to be slightly below the record level reported for 2023.

It added that Britain's Competition and Markets Authority had cleared its£399m purchase of an 80% stake in catering equipment firm Nisbets but the deal was still subject to clearance by the Irish competition authority which is expected during the first half of 2024.

Reporting by Frank Prenesti for Sharecast.com

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