Proactive Investors - Bunzl PLC (LON:BNZL) shares climbed to a month's high after the distribution group kept its revenue outlook unchanged, after giving cautious guidance two months ago.
Revenue in the first quarter fell 5.9%, which was expected, mainly reflecting reduced volumes in the US foodservice redistribution and price deflation.
CEO Frank van Zanten said: "We are taking appropriate action to pursue the opportunities for volume growth in our foodservice redistribution business in North America and this focus on organic growth, alongside our ongoing actions to further improve profitability and returns will enhance the group's prospects over the medium term."
Underlying revenue fell 5.4%, or 2.4% if currency swings are ignored, while acquisitions added growth of 2.9% at constant exchange rates.
For the year the FTSE 100-listed group still expects to deliver "slight revenue growth" for 2024.
Operating profit margins in the quarter were "strong", though the full-year expectation remains that it will be below the record level seen last year.
February's acquisition of Nisbets has been waved through by the UK Competition and Markets Authority, but remains subject to clearance by Irish authorities.
Bunzl also completed an 'anchor' acquisition in Finland of Pamark and sold a safety business in Argentina to the management team, which had annual revenues of £3 million.
Van Zanten said it has been a "strong start to the year for acquisitions" and the pipeline is "active and our balance sheet remains strong".