Bunzl revenues still boosted by COVID-19 related demand

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Bunzl PLC (LON:BNZL) saw good revenue growth in the first three months of 2021 driven by sales of personal protective equipment (PPE) and other Coronavirus (COVID-19) related products.


The FTSE 100 consumables distributor said total revenue rose 5.4% in the period since end-December, with underlying revenue growth of 1.4%.


Sales of the top eight COVID-19 related products, which are primarily own brand, contributed 6.4% to the underlying growth and more than offset a 5% decline in revenue from mainstream products.


Prices for specific COVID-19-related products also remained strong, Bunzl added sales of other lines have now started to recover.


By area, continental Europe and UK & Ireland were affected by pandemic-related restrictions, particularly on foodservice and non-food retail segments, said the statement.


Going forward, Bunzl said it expects revenue growth this year to be ‘robust’, though good organic growth in the first half is likely to slow over the rest of the year as some COVID-19 orders reduce.


Frank van Zanten, chief executive, said: “Looking ahead we are confident in the strength of our consistent and proven compounding strategy, supported by enhanced hygiene trends.


“We have announced three acquisitions in the year to date with the pipeline remaining active and a number of discussions ongoing.”

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