Distribution and services giant Bunzl Plc reiterated its full‑year profit guidance on Wednesday, despite ongoing macroeconomic challenges.
Bunzl said FY revenues were still expected to grow between 2% and 3% at constant exchange rates, but to be broadly flat at actual exchange rates. Underlying revenues were seen as broadly unchanged.
Operating margin was guided at around 7.6%, with the company expecting a moderation in year‑on‑year margin declines in the second half, helped by actions in North America and Continental Europe, easier comparatives in Europe, and synergy benefits from Nisbets.
The FTSE 100-listed firm added that momentum was expected to improve in the final quarter, supported by performance initiatives and new business wins in North America.
Looking ahead, Bunzl stated momentum was expected to improve in the final quarter, supported by performance initiatives and new business wins in North America, and said it anticipates moderate revenue growth in 2026 at constant exchange rates, supported by some underlying growth and a small contribution from announced acquisitions.
Operating margins, however, were expected to be slightly lower year‑on‑year amid continued economic and geopolitical uncertainty.
Chief executive Frank van Zanten said: "Despite what has remained a challenging market, we expect to meet our outlook for 2025, which was set out in April this year. We continue to remain strongly focused on performance across the group and are encouraged by operational improvements being made and new business wins in North America.
"We remain confident in the group's underlying resilience and strength, and ability to deliver consistent compounding growth in the medium-term."
Reporting by Iain Gilbert at Sharecast.com