Bunzl stock rises on upbeat 2023 outlook

Shares in Bunzl (LSE: BNZL) jumped 2.2% on Thursday after the distribution firm predicted continued growth despite economic uncertainty. The stock pared some gains, trading 1.3% higher by mid-morning.

In a trading update, Bunzl forecasted an adjusted operating profit of £885.9 million in 2023 that will show “moderate growth” and be “slightly ahead” of previous guidance.

Bunzl expects total revenue to be 1% to 2% lower year-on-year at constant exchange rates. It earned £12.04 billion in revenue during 2022, and £885.9 million in adjusted operating profit, the company said.

Read More News:
Serco up on strong outlook and European acquisition

For 2024, Bunzl predicts “some revenue growth” in constant currency, despite headwinds. CEO Frank van Zanten cited £1.7 billion in recent acquisition spending.

Bunzl shares have risen 13% year-to-date. The company remains upbeat about continued expansion despite a near-term dip in revenue.