(Reuters) - British business supplies distributor Bunzl (LON:BNZL) raised its annual dividend by 10% on Monday, as profits soared above pre-pandemic levels aided by higher demand and prices of products it sells to the retail, food service and grocery sectors.
The distributor, which supplies a range of products including tableware, plastic cutlery and stationery to businesses spanning across 31 countries, said demand for its low-cost products remained resilient, as businesses look to cut costs amid high inflation.
Earlier this month, Bunzl agreed to new contract terms with Walmart (NYSE:WMT), its largest customer by revenue, to maintain supply distribution services across North America.
The company raised its full-year dividend by 10% to 62.7 pence.
The company's adjusted operating profit for the year ended on Dec. 31 was 37% higher than in 2019 at 885.9 million pounds ($1.06 billion). That was 17.7% higher than a year ago.
Bunzl, which bought Canadian distributor Capital Paper last month, is now set to buy Germany's online distributor Arbeitsschutz-Express, the company said in a separate statement.
($1 = 0.8366 pounds)