StockMarketWire.com - Distribution and outsourcing company Bunzl said it expected first-half revenue to rise and margins to grow 'modestly' this year amid strong performances in the grocery and cleaning & hygiene sectors.

For the six months ending 30 June 2020, revenue was expected to increase by about 6%.

The recent substantial declines in profitability in the lower margin foodservice and retail sectors were expected to be 'more than offset by strong performances in the grocery and generally higher margin safety, cleaning & hygiene and healthcare sectors, primarily driven by 'significant sales' volumes of Covid-19 related products,' the company said.

While sectors such as retail and foodservice were expected to continue to be affected by reduced, albeit improving, demand, those parts of Bunzl supplying the grocery, cleaning & hygiene and healthcare sectors were expected to deliver a 'resilient performance, with a potentially mixed trading performance from the safety sector,' it added.

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