Bunzl continues global acquisition spree as first-half profits rise 6%

Bunzl reported sales of £2.3bn in the six months to 30 June, up 2% on 2009 despite the slightly negative impact of foreign currencies.

Pre-tax profit rose 6% to £100m boosted by improved operating margins outside of the firm’s largest business area in North America.

Chief executive Michael Roney said he was pleased with the good growth in profitability in the “continuing difficult economic conditions”.

“This, combined with the resumption of acquisition activity that has resulted in us buying businesses with annual revenues of £140m so far this year, gives us a platform and momentum for further growth.”

UK and Ireland operating profit increased by 6% due to cost reduction activities, despite falling revenues.

Bunzl acquisition spree
Bunzl also announced that it had acquired California-based plastic and pulp packaging supplier Cool-Pak and Brazilian firm A.M Supply Comércio Representação y Serviços for undisclosed amounts.

The deals are Bunzl’s seventh and eight in the year to date.

It acquired Danish firms Clean Care and Hano at the start of the year followed by Weita in Switzerland in March.

April saw the acquisition of Israeli foodservice disposables supplier Silco that was followed a month later with two Spanish acquisitions, Juba and Marca.

Last month, Bunzl announced a deal for Belgian firm Global Net.

Revenue 2,345.1 (2,293.3 in 2009)
Pre-tax profit 100.0 (94.6)
Operating profit 115.4 (111.2)

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