Bunzl, the parent company of Lockhart Catering Equipment, Aggora, Continental Chef Supplies and most recently Comax, has reported its financial position for the first half of 2021.
The group believes its diversified and resilient business model has delivered good overall growth against continuing pandemic-related challenges.
Group revenue in the first half is expected to increase by approximately 1% at actual exchange rates and to increase by 6% to 7% at constant exchange rates, with the impact of acquisitions such as that of catering equipment dealer Comax being slightly higher than underlying revenue growth and a small impact from fewer trading days.
At constant exchange rates, underlying revenue growth is expected to reflect a strong recovery in the base business, including the foodservice and retail sectors, largely offset by the anticipated decline in larger Covid-19 related orders.
Underlying revenue over the first half is expected to be approximately 6% higher than the comparable 2019 period. Group adjusted operating margin for the first half is expected to be nearly 1% higher than that achieved in the first half of 2019, supported by smaller Covid-19 related orders.
The group’s revenue guidance for the year remains unchanged from that published in its first quarter trading statement. At constant exchange rates, underlying revenue is expected to be moderately higher in 2021 compared to 2019, which Bunzl feels demonstrates the resilience of its business model.
The group is increasing its adjusted operating margin expectations for the year to be slightly ahead of historical levels.
Bunzl’s latest publicly-available financial reporting revealed a £10.1bn turnover with an operating profit of £778.4m in the 12 months to 31 December 2020.