Bunzl Maintains Outlook as Quarterly Revenue Edges Higher

Bunzl plc (LON: BNZL), the international distribution and services group, released its Q3 trading statement, revealing revenue growth in line with expectations. The company reaffirmed its full-year guidance, signaling stability amidst challenging market conditions.

Group revenue saw a 0.6% increase at constant exchange rates. Underlying revenue, adjusted for trading days, rose by 0.4%, aligning with anticipated performance in key business areas.

Acquisitions contributed 1.4% to revenue growth at constant exchange rates, while fewer trading days negatively impacted revenue by 1.1%. At actual exchange rates, overall Group revenue declined by 0.8%.

The company reported a moderation in year-on-year operating margin decline during the quarter, consistent with expectations. Bunzl anticipates moderate revenue growth for 2025, driven by acquisitions and stable underlying revenue.

The group projects its operating margin to be moderately below 8.0% for the year, compared to 8.3% in 2024, with the decline expected to moderate in the second half.

Bunzl has completed approximately £190 million of its £200 million share buyback program for 2025. The Group anticipates leverage to be just over, and towards, 2.0 times at the end of 2025, after potential acquisition spending and the completion of the buyback.

CEO Frank van Zanten stated, “In what remains a challenging market, we remain strongly focused on improving performance across the business…We reiterate our Group outlook for 2025,” reinforcing the company’s commitment to navigating market challenges and delivering on its financial objectives.