Bunzl on track for 2009

14th Dec 2009 07:04

Distribution and outsourcing firm Bunzl has increased revenue by 11% this year so far thanks to currency exchange rates and remains on course to meet full year expectations.The UK blue chip said underlying revenue for the year to 31 December 2009 is down 1% at constant exchange rates, although that's a little better than the growth rate in the first half of 2009.Overall operating margin has improved versus the first half, largely due to cost reduction initiatives.Underlying revenue growth in North America during the second half is "slightly stronger" than the 2% reported for the first six months, but continues to be down year on year in the UK & Ireland.Continental Europe has kept underlying revenue "broadly" in line with the same period last year, but it's improved from the first half as the French snap up cleaning and safety products on fears about swine flu. Underlying revenue in the Rest of the World in the second half is worse the same period in 2008, although the operating margin has improved "significantly" compared to the first half. "Bunzl's geographically diversified and market leading businesses, combined with its strong cash flow and balance sheet, position the group well and should enable it to take advantage of appropriate opportunities to develop further," said the firm.