Sales of Covid-related products underpin Q3 sales at Bunzl

Distribution and services group Bunzl reported a rise in third-quarter revenue on Wednesday thanks to the sale of Covid-19 related products, as it said second-half revenue is expected to grow strongly.

In the period since 30 June, group revenue rose 4% at actual exchange rates and 8.8% at constant exchange rates. Underlying revenue was 8% higher at constant exchange rates, reflecting the continued growth in the sale of coronavirus-related products such as masks, sanitisers, gloves and disinfectants.

Bunzl said that at constant exchange rates, acquisitions contributed 4%, including the impact of MCR Safety which was completed at the beginning of September.

"The 2020 performance year to date has been driven by strong sales of Covid-19 related products, from a combination of smaller orders and the more exceptional larger orders," Bunzl said.

"This has more than offset the impact of weak economic activity on the group’s business. Looking forward, the outlook remains uncertain, particularly considering current pandemic trends and the increasing restrictions which are now being reintroduced in some markets that may limit the continued underlying recovery."

In addition, Bunzl said larger Covid-19 related orders are expected to be more limited.

"However, given the performance year to date and the impact of recently announced acquisitions, the company currently expects revenue in the second half of 2020 to grow strongly at constant exchange rates and anticipates a slightly higher second half operating profit margin compared to the prior year."