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Announces 250 million pound share buyback

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To invest about 700 million pounds a year to 2027

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CEO says keen to expand in the US

(Adds shares, CEO and analyst quotes)

By Yamini Kalia

Aug 27 (Reuters) - Britain's Bunzl ( BZLFF ) raised its

annual adjusted operating profit forecast on Tuesday, benefiting

from acquisitions and demand for its own brand business

supplies, lifting it shares to a record high.

Bunzl's ( BZLFF ) shares rose by as much as 12% in early trading and

were up 10.6% to 3,558 pence at 0743 GMT.

The supplier of everything from food packaging to stationery

has profited from higher prices for daily-use items, increased

penetration of its own brand and recently acquired businesses.

"We are quite keen to expand in the U.S.," CEO Frank van

Zanten told Reuters. Bunzl ( BZLFF ) has announced seven bolt-on

acquisitions in the past year but none in the U.S.

Bunzl ( BZLFF ), which has added over 170 businesses to its portfolio

since 1940, has been struggling with lower volumes in the U.S.

as destocking and inflation hampered demand in the food service

sector.

North American revenue, its largest market by revenue, fell

5.1% during the first-half of the year.

The company expects adjusted operating profit in 2024 to

show a "strong increase" in comparison with 2023, versus a prior

forecast of slightly above the level reported for 2023.

Bunzl ( BZLFF ) also announced a 250 million pound ($330 million)

share buyback plan, with a further 200 million pound return

expected by the end of the year.

The company said it will invest about 700 million pounds

annually to 2027 in acquisitions and shareholder returns.

"This is a solid update from the group, with a step-up in

its capital allocation strategy, coupled with the announcement

of the buyback," said Stifel analysts.

Bunzil, which expects "robust" annual revenue growth, with a

small fall in underlying revenue, reported a 7.4% rise in

adjusted operating profit for the six months ended June 30, with

a slight decline in revenue.

($1 = 0.7576 pounds)