Why Bunzl Is Up 24% This Year

Before you go, we thought you'd like these...
Before you go close icon

LONDON -- Bunzl (ISE: BNZL.L) has advanced 24% to 1,099 pence so far during 2012, making the share one of this year's best performers in the FTSE 100.

The company, which supplies a wide range of day-to-day items such as supermarket plastic bags, restaurant napkins, and hospital aprons, seems to have impressed investors with a series of encouraging statements.

During February, Bunzl issued its annual results. Revenue was up 7% to 5.1 billion pounds, while operating profit rose 10% to 336 million pounds. Adjusted earnings per share grew by 13% to 68.5 pence, and the company increased its dividend by 13% to 26.35 pence per share.


During June, in a trading statement, Bunzl reported that overall trading had been "consistent with expectations," with revenue expected to grow by 7%, aided in part by acquisitions. The firm also said it had seen a slight improvement to its operating margin.

Then, in August, Bunzl's half-year results showed that revenue had grown by the anticipated 7% to 2.6 billion pounds, while pre-tax profit had advanced 8% to 152 million pounds. Adjusted earnings per share grew by 6% to 26.5 pence, and Bunzl's track record of dividend growth continued with an increase of 9% to 8.8 pence per share.

Michael Roney, Bunzl's chief executive, commented:

Even though we have continued to face a challenging marketplace, I am pleased to report another strong set of results. Once again our established strategy of developing the business both organically and through targeted acquisitions has delivered good growth in revenue, profits and earnings.

Looking forward, we believe that Bunzl's strong competitive position and resilient customer sectors, together with opportunities to consolidate further our markets as we expect to complete more acquisitions later this year, should enable the Group to show continued good growth and development.

Bunzl's next trading update will be published on Oct. 19 and may reveal further positive news to impress investors.

If you are seeking a potential blue-chip winner for 2013, "The One UK Share That Warren Buffett Loves" showcases the British household name the legendary index-trouncing investor is backing today, along with the investing logic behind his purchase. You can read all about the famous corporate name Buffett currently favors by downloading this exclusive report today -- it's free!

Are you looking to profit from this uncertain economy? "10 Steps To Making A Million In The Market" is the very latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- it's free. 

Further Motley Fool investment opportunities:

The article Why Bunzl Is Up 24% This Year originally appeared on Fool.com.

Jon does not own any share mentioned in this article. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners