Bunzl PLC, a specialist international distribution and services Group, has released a pre-close statement for the year ending December 31, 2023. The company expects to deliver good annual results, with adjusted operating profit slightly ahead of prior guidance. Group revenue is expected to be broadly in line with 2022, excluding the impact of the disposal of the UK healthcare business. Revenue growth from acquisitions is expected to be offset by underlying revenue decline, reflective of lower Covid-19 related sales and post-pandemic normalization trends. Total Group revenue in 2023 is expected to be 1 to 2% lower than in 2022. Group adjusted operating profit is expected to deliver moderate growth, with operating margin slightly ahead of the previous record level.
Looking ahead to 2024, the Group expects some revenue growth driven by announced acquisitions and slightly positive organic growth. Group operating margin is expected to be broadly in line with 2023 and remain substantially higher compared to pre-pandemic levels. In November 2023, Bunzl completed the acquisition of Melbourne Cleaning Supplies, a distributor of cleaning and hygiene supplies in Australia. In addition, the company completed the acquisition of Flexpost, a distributor of flexible signposts and bollards in North America, and Miracle Sanitation Supply, a cleaning and hygiene distributor in the Canadian province of Manitoba. Bunzl also completed the previously announced acquisitions of Safety First, Grupo Lanlimp, and CT Group.
Frank van Zanten, Chief Executive Officer of Bunzl, expressed satisfaction with the company's performance and stated, "The Group is on track to deliver moderate adjusted operating profit growth, supported by a record operating margin, and we are guiding to further growth in 2024, continuing to build on the strong performance we have seen over recent years." He also highlighted the addition of three new complementary businesses to the Group and the company's commitment to acquisitions, with a cumulative spend of approximately £1.7 billion over the last four years.