LONDON (dpa-AFX) - Distribution and outsourcing Group Bunzl plc (BZLFY.PK, BNZL.L) reported Thursday that its first-quarter revenue has increased approximately 4.5 percent on a reported basis, and 6 percent at constant exchange rates.
Going ahead, the company is withdrawing its fiscal 2020 guidance due to the uncertainly around the impact of coronavirus or COVID-19 pandemic.
The Board has decided it will no longer propose a final dividend for the year 2019 at the Annual General Meeting to be held on April 15.
In its first-quarter trading update, the company said its resilient business model has delivered a strong performance. Underlying revenue growth in Continental Europe was strong, while North America saw some growth. Revenue growth in Rest of the World was particularly strong due to increase in safety businesses in Latin America. UK & Ireland experienced a slight decline, principally due to further weakness in the hospitality sector.
Trading has been strong in safety across the quarter. Meanwhile, the foodservice and retail sectors have been increasingly negatively impacted by the COVID-19 crisis in the latter part of March.
Looking forward, the company projects significant impact on parts of Bunzl supplying to the foodservice and retail sectors affected by the closures across the world.
The cleaning & hygiene and safety sectors are expected to see a mixed trading picture as a result of the end-markets served. Sectors such as grocery and healthcare are expected to deliver a robust performance.
Further, the Board, executive committee and business area managing directors are taking a 20% reduction in fees / base salary during the second quarter 2020 to help support the business.
The Company has also paused all acquisition activity, including deferring the completion of the purchase of ICM.
Copyright RTT News/dpa-AFX