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FTSE 100: Bunzl profit up over 12% to £5.5bn

 Bunzl plc company logo
Business supplies distributor Bunzl has seen its profits increase by 12%. Photograph:Igor Golovniov/SOPA/LightRocket/Getty.

Bunzl plc's interim report shows that the business supplies giant's operating profit has increased by more than 12% in the first half of 2022, compared with the same period in 2021.

On Tuesday the UK business supplies distributor published its half-yearly financial report for the six months that ended on 30 June 2022.

The multinational, which supplies food packaging, latex gloves, work wear and stationery to businesses, saw a boost in revenue.

Bunzl plc shrugged off supply chain woes with an increase in revenue of 16.1% when compared to the first six months of 2021.

Revenue for the first half of 2022 came in at £5.6bn ($6.6bn), which was an increase from the revenue for the same period in 2021 was £4.9bn.

The group's adjusted operating profit was up from £366.8m in the first half of 2021, to £411.4m in the first six months of this year. Showing an adjusted operating profit growth of 12.4%.

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Adjusted earnings per share saw an increase of 10.3%, with earnings per share at 85.7p for the first six months of 2022, compared to 77.7p for the first half of 2021.

During early trading in London on Tuesday shares in Bunzl plc (BNZL.L) were down 105p to £30.10, a drop of 3% in 24 hours.

Bunzl's interim dividend was 17.3p for the first six months of 2022, when compared to 16.2p for the first half of 2021, an increase of 6.8%.

Global businesses remain reliant on the essential products that Bunzl sells and the company supplies essential products to businesses rather than consumers directly.

This has sheltered it from the immediate downturn in retail consumption due to inflation and the subsequent cost of living crisis.

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Commenting on today’s results, Frank van Zanten, chief executive officer of Bunzl, said: “Over the period, our teams have been agile in navigating substantial inflation and supply chain disruption, while supporting recovery in the base business and continuing to provide our customers with essential products and services that are crucial to their operations.

"Our good performance has also been enabled by the depth and flexibility of our global supply chains.

"We remain focused on continuing to execute our long-term compounding growth strategy."

The CEO added: "Sustainability remains a key focus across the group, and we continue to use our position and expertise to innovate and enable customers to transition to packaging products that support the circular economy, as well as investing in solutions that benefit the environment, communities, our supply chain and our people."