Paper and packaging specialist Bunzl announced pre-tax profits of 81.2m for the past six months, a rise of 15%.


Sales rose to 1.17bn from 1.01bn, with operating profits up 16% to 86.1m (74m). Profits rose 4% on the paper distribution side, with sales rising by 8%. In addition, the adjusted earnings per share were up 16% to 11.8p.


The rise in profits was put down to an increase in demand for instant meals, in particular in the US. Added to this was the amount of packaging now being used by in-store bakeries, salad bars and food counters.


Acquisitions made during the period amounted to 35m, with Greenham and Allegro being added since the half-year taking the total spend to 115m.


UPM-Kymmene has agreed to buy North-American LWC paper producer Repap Enterprises in a 620m (e1.01bn) deal that will give it a 20% share of the North American market.


Repaps coated paper plant in New Brunswick, Canada includes two paper machines with a capacity of 450,000 tonnes a year.


UPM-Kymmene owns Blandin Paper in Minnesota, which also produces LWC magazine papers.


Story by Andy Scott