Bunzl sees lower 2021 revenues as Covid-related orders slow
Bunzl
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16:44 25/04/24
Distribution and services group Bunzl forecast revenue growth of 8% in 2020, but lower growth next year as larger Covid-19 related orders slowed down.
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The company on Wednesday said organic revenue growth continued to reflect diverging trends between the strength of Covid-19 related product sales, including a higher proportion of imported own brand products such as gloves, masks, sanitisers and disinfectants, and declines in the sales of other products.
Bunzl said it expected growth in Covid-19 related sales over the fourth quarter to be driven by the ongoing support of smaller orders, whilst larger orders will continue to slow.
The underlying recovery in sales of other products was expected to be broadly offset by a decline in smaller Covid-19 related orders, with acquisitions made during 2020 making a contribution to the group's performance in 2021, the company said in a trading statement.
“The decline in other product sales seen earlier in the year is expected to improve slightly despite the impact of recently strengthened pandemic-related restrictions in some markets,” it added.