Bunzl Reaffirms 2025 Profit Outlook Amidst Economic Headwinds

Bunzl plc (LON: BNZL), the international distribution and services group, updated the market on Wednesday, confirming that its 2025 adjusted operating profit is expected to be in line with initial expectations, despite persistent macroeconomic challenges across key end markets.

This announcement comes as the company enters its closed period for the year ending December 31, 2025.

The group anticipates revenue growth of 2% to 3% at constant exchange rates for 2025. However, at actual exchange rates, revenue is projected to be broadly flat. Acquisitions are expected to be the primary driver of revenue growth at constant exchange rates, with underlying revenue remaining largely unchanged year-over-year.

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Bunzl anticipates strong momentum in the final quarter, driven by actions taken to improve performance, including new business wins in North America.

The company expects an operating margin of around 7.6%, aligning with previous guidance. Furthermore, Bunzl projects a moderation in the year-on-year operating margin decline in the second half of 2025 compared to the first half.

This improvement is attributed to performance-enhancing measures in North America and Continental Europe, easier comparatives in Continental Europe, and synergy benefits from the Nisbets acquisition.

Looking ahead to 2026, Bunzl anticipates continued economic and geopolitical uncertainties. The group forecasts moderate revenue growth at constant exchange rates, fueled by some underlying revenue growth and a small contribution from announced acquisitions.

However, the group operating margin is expected to be slightly down year-on-year.

CEO Frank van Zanten stated, “Despite what has remained a challenging market, we expect to meet our outlook for 2025, which was set out in April this year. We continue to remain strongly focused on performance across the Group and are encouraged by operational improvements being made and new business wins in North America.”