Distributor Bunzl has announced a three per cent increase in revenue, reaching £5.93bn in the first half of the year. This growth was attributed to commodity-driven price adjustments and expansion in North American markets.
The FTSE 100 outsourcing group also saw its gross margin rise to 29.4 per cent, up from 28.8 per cent in the previous period. The firm stated this expansion was due to its ability to manage an inflationary environment effectively. Operating profit for the period increased by eight per cent to £440.6m.
Bunzl has upgraded its full-year margin expectations to be flat year-on-year and initiated a £500m share buyback. The company also increased its interim dividend by three per cent. However, Bunzl cautioned that the performance was largely driven by inflation, much of which is anticipated to be temporary.
North American revenue grew by 4.6 per cent, boosted by strong growth in grocery and foodservice, with this market accounting for 52 per cent of the company's revenue. In the UK, revenue saw a 1.3 per cent increase, and the operating margin rose to 7.1 per cent from 6.6 per cent following the acquisition of catering company Nisbets.