Distribution giant Bunzl reported a slip in profits today despite revenues rising 1.7 per cent, as its food and retail divisions rebounded from a pandemic slow down.
Revenue at the London-headquartered firm jumped 7.1 per cent to £10.29bn, while adjusted operating profits fell 3.3 per cent to £752.8m, down from £778.4m last year.
But bosses said its 14 acquisitions last year had offset the forecasted impact of a covid slowdown in sales, with revenues now rising to 17.1 per cent higher than 2019 levels.
Frank van Zanten, Chief Executive Officer of Bunzl, was positive about the group’s performance and said it had demonstrated a strong business model and a rebound from the pandemic.
“Those sectors most impacted by the pandemic, such as retail and foodservice, are recovering strongly, supported by inflation, and Bunzl continues to benefit from enhanced hygiene trends.
“I am pleased that we have made good strategic progress despite pandemic-related challenges, particularly with the acceleration of our sustainability ambitions.”
Van Zanten said the firm had pledged to join the UN’s race to zero and continued to work with its customers as they transition products to sustainable material.
Shareholders are in line for a hike in payouts as bosses pledged to increase 5.4 per cent to 57p, up from 54.1p last year.