LONDON (dpa-AFX) - Bunzl Plc (BZLFY.PK, BNZL.L), a British distribution and outsourcing company, on Tuesday said its third-quarter adjusted operating profit was in-line with expectations, and revenues were lower. Further, the company reiterated its outlook for fiscal 2023 adjusted operating profit.
In its trading statement for the period since June 30, the company said it continues to perform well following strong performance over recent years and continued resilience.
In the third quarter, group revenue declined 8.8 percent on a reported basis and 4.8 percent at constant exchange rates. Underlying revenue, which is organic growth adjusted for trading days, declined 4.7 percent.
The revenues were hurt by a continued decline in Covid-19 related product sales, a reduced level of inflation benefit, and wider post-pandemic related normalisation trends which drove expected volume weakness consistent with the prior quarter.
Operating margin over the quarter was very strong, remaining substantially higher than compared to the pre-pandemic period in 2019, and slightly ahead of the Group's expectations.
Looking ahead for fiscal 2023, the company continues to expect adjusted operating profit being moderately higher than in 2022 at constant exchange rates.
Group revenue, at constant exchange rates, will be slightly lower than in 2022, with the benefit of announced acquisitions offset by some organic decline.
Operating margin in 2023 is now expected to reach the record level seen in recent years.
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