Bunzl Shares Plunge After 2025 Outlook Cut

Bunzl PLC shares dropped over 25% to a near four-year low after the company cut its 2025 outlook and paused its £200 million share buyback program, citing ongoing operational and margin challenges in North America. The company now expects only moderate revenue growth at constant exchange rates for 2025, with group operating margin forecasted slightly below 8%, down from 8.3% in 2024. Revenue softness among North American food service and grocery customers, broader economic uncertainty, and the potential impact of US tariffs have contributed to the revised outlook. The first quarter saw adjusted operating profit decline significantly and miss expectations, despite a small increase in revenues. Bunzl plans to maintain debt at the lower end of its typical range to preserve financial flexibility. Analysts are reviewing profit forecasts, with a possible 10% cut to 2025 pre-tax profit consensus, while CEO Frank van Zanten emphasized decisive action to improve performance.