Distribution company Bunzl continues 'strong growth' with half-year figures

Distribution company Bunzl has completed its half-year report for the six months to June 30, 2019.

The London-headquartered firm’s revenue has increased by 4.3 per cent, with an underlying organic growth of 0.8 per cent.

Adjusted profit before tax was up 2.7 per cent, based on a consistent IAS 17 basis. Meanwhile, the return on Bunzl’s average operating capital stood at 48.8 per cent. There also continues to be a ‘strong’ cash conversion of 96 per cent.

Bunzl’s 26-year track record of dividend growth has also continued to grow with a two per cent increase in the interim dividend.

Commenting on today’s results, Bunzl’s chief executive Frank van Zanten said: “Against the background of slowing macroeconomic and market conditions across the countries and sectors in which we operate, Bunzl has produced a resilient operating performance with high cash conversion and an increased dividend.

“Looking forward, the group’s expectations for 2019 remain unchanged. Despite continuing economic uncertainties, the Board believes that the combination of our strong competitive position, diversified and resilient businesses and ability to consolidate our fragmented markets will lead to further progress.”

He added: “We have a strong balance sheet and are in active discussions with a number of acquisition targets which we anticipate will result in additional deals during the remainder of the year.”