Bunzl Shares Plunge as Guidance Cut On Operational Challenges

Bunzl (LON: BNZL) shares dropped more than 25% early on Wednesday after the company cut its 2025 guidance, citing operational issues in North America and a weak start to the year.

The FTSE 100 firm reported a 2.6% rise in first-quarter revenue at constant exchange rates, but underlying revenue declined by 0.9%. 

Adjusted operating profit is said to be down significantly year-on-year, driven by margin pressure in North America and Continental Europe.

Bunzl said performance at its largest North American business, which serves foodservice and grocery clients, had been hit by execution difficulties tied to a strategic shift towards own-brand products. 

The company cited slower-than-expected volume recovery, continued deflation, and the loss of a customer category as key headwinds.

“We are taking decisive action to improve performance in the Group, particularly with regards to execution in our largest business in North America,” said CEO Frank van Zanten. 

Leadership changes and cost-saving measures have been initiated, with improvements expected to materialise through 2026.

The group now expects moderate revenue growth in 2025 and a full-year operating margin “moderately below” 8%, down from 8.3% in 2024. First-half operating margin is forecast at 7%.

Bunzl has also paused its share buyback programme and aims to end 2025 at the lower end of its 2.0x–2.5x net debt to EBITDA leverage range.