LONDON (dpa-AFX) - Distribution and outsourcing Group Bunzl plc (BZLFY.PK, BNZL.L) said that it expects group revenue for fiscal year 2020 to increase by about 8% at actual exchange rates and by approximately 9% at constant exchange rates, due to similar levels of growth from both the increase in organic revenue and the impact of acquisitions.
The company's resilient business model is expected to deliver a strong performance in the year ending 31 December 2020, with continued growth in Covid-19 related orders during the fourth quarter of the year against the background of increased pandemic-driven restrictions in some markets.
The company expects the growth in Covid-19 related sales over the fourth quarter to be driven by the ongoing support of smaller orders, whilst larger orders will continue to slow. The decline in other product sales seen earlier in the year is expected to improve slightly despite the impact of recently strengthened pandemic-related restrictions in some markets.
At constant exchange rates the Group expects revenue in 2021 to be lower than the current year with minimal benefit from larger Covid-19 related orders which have strongly supported the performance in 2020.
The Group expects an underlying recovery in sales of other products to be broadly offset by a decline in smaller Covid-19 related orders, with acquisitions made during 2020 making a contribution to the Group's performance in 2021. Group operating margins are expected to return to more historical levels.
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