24th Jun 2025 08:46
(Alliance News) - Bunzl PLC on Tuesday said trading is in line with expectations, and predicted an improved second half performance, despite an "uncertain" backdrop.
In a trading update, the London-based distribution and outsourcing company said group revenue is expected to be 4% higher in the six months to June 30 than the prior year, at constant exchange rates, and up to 1% higher at actual exchange rates.
Growth at constant exchange rates is expected to be driven by acquisitions, net of disposals, and with broadly flat underlying revenue over the period.
Bunzl expects operating margin over the period to be in-line with previously published guidance at around 7.0%, with the expected group adjusted operating profit decline also in-line with expectations.
In the first half of 2024, its operating margin was 8.0% and adjusted operating profit totalled GBP455.5 million.
For the full-year, "moderate" revenue growth is expected at constant currency. Its operating margin is forecast to be "moderately below" 8.0%, compared to 8.3% in 2024.
"The group's second half operating margin is seasonally higher and expected to benefit from actions taken," Bunzl added.
On Tuesday, shares in Bunzl rose 1.6% to 2,356.00 pence each in London but have fallen 23% in the last 12 months. The wider FTSE 100 was up 0.5%.
In April, shares in Bunzl slumped after it lowered guidance and paused its share buyback programme amid weaker-than-expected trading.
Bunzl Chief Executive Officer Frank van Zanten said: "Alongside a macroeconomic backdrop that remains uncertain, the group is trading in-line with our expectations. Actions are underway to improve performance in the group, particularly in our largest business in North America and in Continental Europe, and we anticipate improvement in the second half of the year.
In addition, Bunzl said it has struck a deal to acquire Solupack, a distributor of own brand packaging solutions to the food industry. It has acquired the Brazilian company for BRL106 million, some GBP15 million.
CEO van Zanten said: "I am also pleased to welcome Solupack to the Bunzl family today, our third acquisition of the year, with our pipeline remaining active. The group's compounding growth strategy and resilient business model underpin Bunzl's long-term track record of delivery and the group continues to be well placed to navigate periods of macroeconomic uncertainty."
By Jeremy Cutler, Alliance News reporter
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