21st Apr 2021 08:56
(Alliance News) - Distribution and services firm Bunzl PLC on Tuesday said it expects "robust" revenue growth for the year ahead, despite the challenges posed by the pandemic.
London-based Bunzl reported a 5.4% rise in revenue in the first quarter of 2021 and a 10% increase at constant exchange rates, driven by demand for Covid-related products such as personal protective equipment.
Despite expecting organic revenue growth in the first half of 2021, the firm did warn of a "moderate decline" in the second half of the year.
Acquisitions contributed 4.3% to constant currency growth and additional trading days 4.7%, Bunzl said. Underlying revenue growth at constant exchange rates was in line with expectations at 1.4%.
Bunzl expects "robust" revenue growth in 2021 after excluding larger Covid-19 related orders, which contributed around GBP550 million last year. Adjusted operating margin will return to a more historical level in 2021, it said, having been elevated by Covid-19.
"The resilience of the Bunzl model continues to be demonstrated by our ability to respond to changing customer needs and through our financial performance," Chief Executive Frank van Zanten said.
"Looking ahead we are confident in the strength of our consistent and proven compounding strategy, supported by enhanced hygiene trends, our differentiated offering of sustainable and responsible solutions and acquisition momentum.
"We have announced three acquisitions in the year to date with the pipeline remaining active and a number of discussions ongoing."
Shares in Bunzl were trading 2.9% lower at 2,432.44 pence each on Wednesday morning in London.
By Will Paige; [email protected]
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