Bunzl confirms 2025 outlook despite narrowed operating margin
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 £190 million of its £200 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.
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