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Bunzl revenue rises on strong COVID-19 product sales, acquisitions

Published 21/04/2021, 07:16
BNZL
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(Reuters) -Bunzl Plc reported a rise in first-quarter revenue on Wednesday, boosted by demand for protective masks and gloves during the pandemic, and recent acquisitions, while maintaining its outlook for the rest of the year.

The British firm, which supplies companies with disposable tableware, personal protection equipment, cleaning chemicals and other products and services, said revenue for the quarter ending March 31, 2021 rose 10.4% at constant exchange rates.

Bunzl (LON:BNZL)'s revenue surged in 2020 amid robust demand for protective masks and gloves at the peak of the COVID-19 crisis.

However, as pandemic-related lockdowns peter out across the UK and United States, the company said it continues to expect good organic revenue growth in the first half of 2021 even after excluding larger COVID-19 related orders.

The company expects a moderate decline in the second half of the year as it had a one-time large order for personal protection gear in the comparable period last year, Bunzl's Chief Executive Officer Frank van Zanten told Reuters.

"Looking ahead, we are confident in the strength of our consistent and proven compounding strategy," van Zanten, who took the top job in early 2016, said in a statement.

Bunzl routinely makes small acquisitions aimed at growing specific parts of its business. In the first three months of 2021, it closed three such complementary acquisitions.

The company expects enhanced hygiene trends and recent acquisitions to further contribute to its performance in 2021.

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