Bunzl backs 2025 outlook but shares fall on narrowed margin in 2026

(Alliance News) - Bunzl PLC on Wednesday backed guidance for 2025, despite challenging markets, but cautioned operating margin is expected to be slightly down in the coming year.

The London-based distribution and services company reaffirmed adjusted operating profit guidance for 2025, which JPMorgan put at GBP900 million, set out in April.

Operating margin is forecast of around 7.6%, down from 8.3% in 2024.

The decline in operating margin is expected to have moderated in the second half of 2025 from the first six months, Bunzl said.

The FTSE 100 listing expects revenue in 2025 to grow between 2% and 3%, at constant exchange rates, from GBP11.78 billion in 2024, and to be broadly flat at actual exchange rates.

Revenue growth is expected to be driven by acquisitions, with broadly flat underlying revenue over the year.

Bunzl said expects to see good momentum over the final quarter of 2025, despite tougher comparatives, supported by new business wins in North America.

Looking ahead into 2026, "uncertainties relating to the wider economic and geopolitical landscape are expected to continue", Bunzl said.

Moderate revenue growth in 2026, at constant exchange rates, is forecast, driven by some underlying revenue growth and a small benefit from announced acquisitions.

But group operating margin is expected to be slightly down year-on-year from the 7.6% forecast in 2025 versus consensus for it to be slightly higher at 7.7%.

"We have presented our view of 2026 which highlights our expectations for a return to organic growth and ongoing cost actions to support a more stable profit outlook," Bunzl Chief Executive Frank van Zanten.

Shares in Bunzl were down 3.8% to 2,136.00 pence each in London on Wednesday. It was the biggest faller in the FTSE 100 which was up 1.3%.

By Jeremy Cutler, Alliance News reporter

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