Bunzl confirms 2025 outlook despite narrowed operating margin

(Alliance News) - Bunzl PLC on Tuesday confirmed its financial guidance for 2025, despite flat revenue in the third quarter and a narrowed operating margin amid a "challenging market".

Bunzl shares were down 0.9% to 2,428.00 pence early Tuesday in London. They are down 32% over the past 12 months.

The London-based distribution and services company said revenue rose by 0.6% at constant currency from a year before in the third quarter, as net acquisitions contributed 1.4% growth but fewer trading days in the quarter compared to a year before detracted by 1.1%. Underlying revenue, which is organic revenue adjusted for trading days, was up 0.4%.

Total revenue at actual currency exchange rates was down 0.8% annually in the recent quarter.

Bunzl said its full-year guidance remains unchanged. It expects "moderate revenue growth" at constant exchange rates, but a narrowed operating margin. This is expected to be below 8.0%, compared to 8.3% in 2024, though Bunzl noted that the decline in its operating margin moderated in the third quarter compared to the first half.

Bunzl has completed GBP190 million of its GBP200 million share buyback for 2025. It said leverage - meaning net debt to earnings - to be just over 2.0 times by the end of 2025.

By Tom Waite, Alliance News editor

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