LONDON (ShareCast) - (Sharecast News) - International distribution specialist Bunzl said it expected annual revenue and operating margin to be slightly ahead of forecasts as it reported a rise in first-quarter sales of 8.4%.
The company on Wednesday said underlying revenue growth benefitted from continued inflation support but was impacted by the expected decline in Covid-19 related sales.

Acquisitions contributed further growth of 2.7% at constant exchange rates, whilst the disposal of its UK healthcare business impacted revenue by 2.1%. Adjusted operating margin over the quarter was slightly ahead of expectations.

"Underlying revenue growth in Continental Europe and UK & Ireland continued to be supported by very strong product cost inflation. Underlying revenue growth in North America, whilst benefitting from continued product cost inflation, was impacted by volume softness in our foodservice sector, some of which is anticipated to be temporary," Bunzl said in a trading update.

"Rest of the World was impacted by the decline in Covid-19 related sales, including the non-repeat of some larger orders made during the first quarter of last year."

Reporting by Frank Prenesti for Sharecast.com

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