Bunzl sees operating margins slightly higher than historic levels

Distribution and services group Bunzl said first-half operating margin was expected to be slightly higher than historic levels as inflation and acquisitions drove underlying growth.

Group revenue in the six months to June 30 was expected to increase year-on-year by approximately 16% at actual exchange rates and by 12-13% on a constant currency basis, the company said on Thursday.

“Growth of the base business is expected to be only partially offset by the further normalisation of sales of Covid-19 related products, albeit these are expected to remain ahead of 2019 levels,” it added.

Strong revenue growth had continued in North America and continental Europe over the period, while the UK & Ireland's operating margin continues to see year-on-year improvement alongside very strong base business recovery.

Rest of the World revenue growth was moderate, with very strong growth in Asia Pacific partially offset by the expected decline in Covid-19 related sales in Latin America, Bunzl said.