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Bunzl Posts Higher H1 Results; Agrees To Buy MCR Safety, Abco Kovex

(RTTNews) - Bunzl Plc (BZLFY.PK, BNZL.L) reported increased results for the first half period, and also announced that it has agreed to buy a US based safety business and a flexible packaging distributor in Ireland.

The company reported first-half statutory profit before income tax of £245.4 million compared to £200.5 million last year. On a per share basis, basic earnings rose to 55.6p from 46.5p reported a year ago.

Adjusted profit before income tax increased to £306.8 million from £264.2 million in the prior year period. Adjusted earnings per share grew to 70.1p from 60.4p earned in the same period of last year.

Revenue for the period totaled 4.85 billion, higher than the previous year's revenue of £4.53 billion.

In a seperate press release, the company said it agreed to acquire a US based safety business and a flexible packaging distributor in Ireland. MCR Safety distributes a variety of largely own brand personal protection equipment and other safety products to distributors operating in a number of end user markets.

In 2019, the aggregate revenue for the businesses to be acquired, which overall trade at well above the North America business area average operating margin, was US$248 million. About 80% of the revenue relates to sales in the US. The acquisition is expected to be completed at the end of August 2020.

Abco Kovex is a distributor of flexible packaging based in Dublin, Ireland but with operations also in the UK and is principally engaged in the sale of items such as stretchfilm, polythene and paper packaging and pallet wrap to a variety of end users in the food, construction, packaging, foodservice and pharmaceutical sectors. Revenue in 2019 was €23 million. Completion of the acquisition is subject to clearance of the transaction by the Irish competition authority.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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