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Prices & Quotes - UK Markets - Bunzl (BNZL)

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Share Price:
Up 2,370.00p
Change Today:
11.00p
Market Cap:
7,987m
Sector:
General Industrials

Bunzl reinstates dividend as interims beat forecasts on PPE demand

By Frank Prenesti

Date: Monday 24 Aug 2020

LONDON (ShareCast) - (Sharecast News) - Distribution group Bunzl reinstated its dividend as it reported better-than-expected interim profits on the back of strong demand for personal protective equipment during the Covid-19 pandemic, but warned of a tougher second half ahead.
The company on Monday reported a 16.6% rise in adjusted pre-tax profits to 306.8m on revenue growth of 6.7% to 4.85bn. Analysts had forecast 296m and 4.8bn respectively.

Bunzl, which scrapped payouts in April, reinstated its 2019 dividend of 35.8p a share as an extra interim dividend for 2019 and declared an interim 2020 dividend of 15.8p a share.

The company also announced that it had entered into deals to buy MCR Safety, a U.S.-based personal protection equipment business, and Abco Kovex, a packaging distributor in Ireland.

At the height of coronavirus-led lockdowns in April, the company benefited from rising demand from grocery, healthcare as well as cleaning & hygiene sectors. However, the food service and retail sectors, which account for around 35% of its business, had been severely hit since March.

The boost was primarily driven by "significant sales volumes of Covid-19 related products including masks, sanitisers, gloves, disinfectants, coveralls, disposables wipes, face shields and eye protection", Bunzl said.

"Looking forward, although there remains considerable uncertainty, we expect to face challenging trading conditions during the second half of the year," said chief executive officer Frank van Zanten.

Analysts at Shore Capital retained a 'buy' rating on Bunzl shares, saying they believed the company was "a quality operation all round, driven by a strong client service culture with capital allocation and capital returns driving management".

"We feel that with opportunity for growth remaining, with a stable organic platform, the shares deserve a premium rating. The company is one of a minority of 'Large Caps' to increase its dividend in the current difficult Covid-dominated period."

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Bunzl Market Data

Currency UK Pounds
Price 2,370.00p
Change Today 11.00p
52 Week High 2,603.00p
52 Week Low 1,277.00p
Volume 171,716
Shares Issued 336.99m
Market Cap 7,987m

Performance Indicators

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What The Brokers Say

Strong Buy 7
Buy 0
Neutral 7
Sell 0
Strong Sell 3
Total 17
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Bunzl Dividends

  Latest Previous
  2nd Interim 1st Interim
Ex-Div 03-Dec-20 15-Oct-20
Paid 07-Jan-21 16-Nov-20
Amount 15.80p 35.80p

Trades for 01-Dec-2020

Time Volume / Share Price
14:23 77 @ 2,370.00p
14:23 17 @ 2,370.00p
14:22 75 @ 2,370.00p
14:22 100 @ 2,370.00p
14:22 35 @ 2,369.00p

Bunzl Key Personnel

CFO Richard Howes
Chair Peter Ventress