Bunzl sees strong H1 on Covid-19 food, medical deliveries

International distribution group Bunzl said it planned to repay employee-related government support packages and bring forward the settlement of tax deferrals after as increased deliveries of food and medical products during the coronavirus pandemic drove higher first half revenues.

The company on Monday said revenue was expected to increase by approximately 6% at both actual and constant exchange rates.

Bunzl said it remained cautious about the future outlook given the timing of recovery of markets in the second half, particularly as the volume of orders for Covid-related products seen during the first half was not expected to be repeated with many customers having already built significant stocks of products for the rest of the year.

"The recent substantial declines in profitability in the lower margin foodservice and retail sectors are expected to be more than offset by strong performances in the grocery and generally higher margin safety, cleaning & hygiene and healthcare sectors, primarily driven by significant sales volumes of Covid-19 related products," the company said.