Bunzl boosts H1 profits and dividend despite currency turmoil

26th Aug 2014 08:43

Strong performances in emerging and Western markets have helped packaging and cleaning supplies group Bunzl to lift underlying half-year profits and its dividend, although currency turbulence took its toll.Bunzl said pre-tax profit in the six months to 30 June increased by 14% to £176.6m at constant exchange rates, although the rise was 5% at actual rates. Revenue also took a hit from currency volatility, rising 7% to £2.9bn at constant rates but falling 1% in actual terms.In North America, revenue rose 5% to £1.6bn - down 3% at actual exchange rates - due to a good self-generated rise in revenue and the effect of acquisitions.Continental European revenue rose 3% to £573.3m with operating profit up 9% to £50.1m. The UK & Ireland business boosted revenue by 5% to £507.8m and operating profit rose 13% to £33.7m. A recovery in the building industry lifted its cleaning and safety supplies business and its health business did well.Rest of the world revenue increased 29% to £267.5m and operating profit rose 45% to £26.1m with the results benefiting significantly from the impact of acquisitions, particularly in Latin America.Bunzl said it had made a good number of acquisitions this year and expected to complete a number of further acquisitions in the rest of the year."The board is confident that the group will continue to build the business," it said.It hiked the interim dividend by a tenth to 11p. The shares rose 35p or 2.1% to 1665p.PW