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Highlights:

  • BNZL expects H1FY25 group revenue to rise ~4% YoY at constant FX, driven by acquisitions.
  • The company signs third acquisition of the year, targeting continued debt reduction and growth.
  • Bunzl forecasts FY25 operating margin to be moderately below 8% YoY, down from 8.3% YoY in FY24.

Bunzl plc (LSE:BNZL), the international distribution and services group, released a trading update ahead of its closed period for the six months ending 30 June 2025. The company anticipates group revenue to be approximately 4% higher year-on-year at constant exchange rates and up to 1% higher at actual exchange rates. The performance reflects contributions from recent acquisitions and disposals, while underlying revenue is projected to remain broadly flat.

Operating margin for the first half is expected to align with earlier guidance at around 7.0%. The company also confirmed that adjusted operating profit for the period is likely to decline in line with expectations.

Bunzl reiterated its full-year 2025 outlook, expecting modest revenue growth at constant exchange rates. This projection is underpinned primarily by completed acquisitions, with underlying revenue anticipated to remain stable. The group’s full-year operating margin is forecast to come in moderately below 8.0%, a decline from the 8.3% margin recorded in 2024. However, the company expects a seasonal margin improvement in the second half, supported by internal performance-enhancement initiatives.

The company has also provided an update on its capital allocation strategy, highlighting recent acquisition activity. In May 2025, Bunzl agreed to acquire Solupack, a Brazilian distributor of own-brand packaging products for the food industry. Solupack generated revenue of BRL 106 million (approximately GBP 15 million) in FY24. The acquisition remains subject to clearance by Brazil’s competition authority. Once completed, it will be integrated with Bunzl’s existing operations in the region, expanding the company’s service offering to food sector clients.

This transaction marks Bunzl’s third acquisition in 2025. The group has emphasized that its acquisition pipeline remains active, in line with its long-term compounding growth strategy. Management noted that further acquisitions could be undertaken in the second half of the year.

Bunzl expects its net leverage at the end of June 2025 to be around 2.0x adjusted net debt to EBITDA. This is consistent with the company’s objective of remaining at the lower end of its target range of 2.0x to 2.5x by year-end, even after potential additional acquisition spending.

Commenting on the update, CEO Frank van Zanten noted that despite macroeconomic headwinds, the company remains on track with expectations. He highlighted ongoing efforts to improve performance across the business, particularly in Bunzl’s largest regions North America and Continental Europe which are expected to benefit from targeted operational actions in the latter half of the year.

The CEO also welcomed Solupack as part of Bunzl’s expanding portfolio, stating that it reflects the group’s ability to execute on strategic M&A despite challenging conditions. While reiterating the company’s focus on essential product distribution, van Zanten acknowledged that broader economic trends continue to influence demand patterns.

Bunzl shares were trading 2.16% higher at GBX 2,370.00 per share as of 24 June 2025