Bunzl PLC (LON:BNZL), the acquisitive FTSE 100-listed distribution group, has reported strong first-half numbers helped by demand for coronavirus (COVID-19) related products and grocery items.
As a result, Bunzl has decided to restate its previously suspended final dividend and increased the interim payment this time by 1.9% to 15.8p.
Frank van Zanten, Bunzl's chief executive, said the decision to restore the dividend followed a better than expected trading performance during the first half of the year
Revenues in the half-year to June 30, 2020, rose by 7% to £4.86bn, while pre-tax profits jumped 22% to £245mln or by 16.6% on an adjusted basis to £306.8mln.
“The recent substantial declines in profitability in the lower margin foodservice and retail sectors were more than offset by strong performances in the generally higher-margin safety, cleaning & hygiene and healthcare sectors, primarily driven by significant sales volumes of Covid-19 related products including masks, sanitisers, gloves, disinfectants, coveralls, disposables wipes, face shields and eye protection," van Zanten said in the trading update.
“We have also seen good growth in our grocery businesses,” he added