Overview

• Bunzl shares dropped by 25%, erasing over £2 billion in market value, after warning of profit declines due to economic uncertainties linked to US tariffs.
• The company reported a significant year-on-year decline in adjusted operating profit and operating margins during the first quarter of 2025.
• Bunzl now expects operating margins to fall below 8% for 2025, down from 8.3% in 2024, with the first half of the year seeing margins as low as 7%.
• Leadership changes were announced in the North American division, which accounts for 60% of Bunzl's business, citing local management's slow response to market challenges.
• The company paused its share buyback program for 2025 and anticipates moderate revenue growth, buoyed by acquisitions, despite ongoing macroeconomic headwinds.