Bunzl says its revenue came in 8.8% higher in Q3 at constant exchange rates

In a financial update on Wednesday, Bunzl plc (LON: BNZL) revealed a 4.0% annualised growth in its third-quarter revenue at actual exchange rates. At constant exchange rates, the increase in revenue came in at a much higher 8.8%.

Bunzl jumped close to 4% in premarket trading on Wednesday and gained another 1.5% on market open. Including the price action, shares of the company are now exchanging hands at £26.50 per share that represents a more than 100% growth since March, when the impact of COVID-19 was at its peak.

In comparison, Bunzl had started the year at a per-share price of £20.90.

Bunzl forecasts significant growth in H2 revenue

Bunzl also expressed confidence that its revenue was likely to post significant growth in the fiscal second half at constant exchange rates. For operating profit margin in H2, it forecasts a slight improvement as compared to the same period last year. Earlier in October, Bunzl named Erica Glanz as its Senior Director of Diversity and Inclusion for its business in North America.

The distribution and outsourcing company noted an 8.0% growth in Q3 underlying revenue at constant exchange rates, attributed primarily to higher sales of products like disinfectants, sanitisers, gloves, and masks that were greatly in demand in recent months due to the Coronavirus pandemic.

Bunzl reinstated dividend payments in August on the back of stronger than expected profit and revenue in the fiscal first half. According to the London-based company:

“The 2020 performance year to date has been driven by strong sales of COVID-19 related products, from a combination of smaller orders and the more exceptional larger orders.”

Other products sales come in 9.5% lower in the third quarter

Sales of other products, however, registered a 9.5% decline in the fiscal third quarter. COVID-19 has so far infected more than 634 thousand people in the United Kingdom and caused over 43 thousand deaths.

The British multinational acknowledged the market uncertainty due to the COVID-19 crisis on Wednesday with new restrictions being imposed on some markets as the number of cases start to rise again.

Bunzl’s performance was slightly dovish in the stock market last year with an annual decline of roughly 10%. At the time of writing, it is valued at £8.90 billion and has a price to earnings ratio of 23.24.