The share price of Bunzl (LSE: BNZL) — the international distribution and outsourcing company — is currently up almost 1.5%, following release of the company’s half-year report for 2013.
Pre-tax profit was up 12%, to £167.6m, on revenue that had increased 13%, to £2956.6m. Adjusted earnings per share grew by 12%, up to 37.1p (all on a reported growth basis, and before intangible amortisation and acquisition related costs).
The board has proposed to raise the interim dividend by 14% to 10.0p, continuing what the company describes as a “strong track record of dividend growth”. Bunzl’s dividend grew by 7% in 2012, 13% in 2011 and 8% in 2010.
Commenting on the results, Chief Executive Michael Roney said:
“These results once again demonstrate the resilience and reliability of our business model and strategy with double digit growth in revenue, earnings and dividends.
“Looking forward, although the macroeconomic outlook remains challenging in some markets, we believe that our strong competitive position and the opportunities to consolidate our fragmented markets further should enable the Group to show continued growth during the rest of the year. We have a promising acquisition pipeline and have had an encouraging start to the second half of 2013 with the announcement today of two acquisitions, Espomega in Mexico and TFS in the UK.“
At the time of writing Bunzl’s share price is 1373p. That’s up 36% so far in 2013, but only 23% on this time last year, thanks a dip in October 2012, due to market disappointment with a management statement. Bunzl’s forward yield currently stands at around 2.36%, forecast to rise to over 2.4% in 2014.
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> Jon doesn’t own shares in Bunzl.
