Bunzl PLC expects the trading environment in the 2009 financial year to be more challenging than in 2008 but that the current valuation of sterling, if it persists, will provide significantly greater positive translation revenue and profits in 2009 than in 2008.
The comments came as the maker of food packaging, disposable tableware and catering equipment, cleaning and hygiene supplies announced a 13 percent rise in full-year pretax profit before amortisation to £242.9 million. The rise was 5 percent at constant currencies.
Pretax profit increased 8 percent year-on-year to £206.9 million, up 1 percent at constant currencies.
Revenue in the period to December 31 2008 was up 17 percent £4.177 billion, or 8 percent at constant currencies.
“Even though the global economies have continued to deteriorate, the board expects that its market leading positions in relatively resilient sectors and the positive impact of currency will enable the group to continue to develop positively,” Bunzl said in a statement.
In North America the positive impact of new customer wins and additional business with existing accounts should increase the level of organic revenue growth from 2008, albeit with some mix-driven margin pressure.
In spite of new client wins in UK & Ireland, the very difficult economic situation is likely to continue to put pressure on sales thereby limiting the potential for growth in 2009. Growth in Continental Europe is expected to be lower as recent acquisitions are fully integrated and the pressure on underlying growth continues. In the Rest of the World good growth is expected, it said.
Bunzl plans to raise the final dividend 10 percent to 14.15 pence a share, bringing the total payout to 20.6p, also a 10 percent rise.