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Bunzl's first-half adjusted pretax profit up 18 percent

Published 29/08/2017, 07:46
© Reuters.  Bunzl's first-half adjusted pretax profit up 18 percent
BNZL
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(Reuters) - British business supplies distributor Bunzl Plc (L:BNZL) posted an 18 percent rise in first-half profit, as benefits from recent acquisitions continued to support its growth during the period.

Adjusted pretax profit rose to 248.3 million pounds in the six months ended June 30, from 210.6 million pounds a year ago, said the company, which supplies products ranging from safety gear for builders and packaging materials for supermarkets.

Group revenue rose 20 percent to 4.11 billion pounds, while organic revenue grew 3.7 percent.

The company had in June estimated a 3 percent to 4 percent rise in first-half underlying revenue, helped by acquisitions as well as business wins in North America.

As a supplier of low-value products such as carrier bags and toilet rolls to supermarkets, hospitals and hotels, Bunzl is more exposed to consumer spending than most of its support services peers that contract orders from large private firms and public budgets.

However, while a slide in UK consumer confidence has squeezed retail sales there, most of Bunzl's revenue comes from North America, where it expects to see an uplift from President Donald Trump's plan for more local manufacturing.

Buznl had said last year that it was still keen on purchasing smaller businesses in the UK as Britain had not become any less attractive since it voted to leave the EU.

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