Image source: Shutterstock

Highlights

  • Bunzl reported a 0.2% YoY decline in revenue for FY24, totalling GBP 11,776.40 million, due to deflationary pressures and strategic changes
  • Operating profit increased by 1.3% YoY to GBP 799.30 million in FY24, driven by higher-margin acquisitions and margin improvements
  • On 3 March 2025, the company completed the first GBP 50 million tranche of its 2025 share buyback program
  • Bunzl expects higher revenue growth in 2025, supported by acquisitions, despite ongoing economic and geopolitical challenges

Bunzl PLC (LSE:BNZL) is a global FTSE 100-listed company specializing in distribution and services. It operates across four main segments: North America, Continental Europe, UK & Ireland, and the Rest of the World.

For the financial year 2024 (FY24), Bunzl reported a slight decline in revenue, dropping 0.2% YoY to GBP 11,776.40 million, primarily due to deflationary pressures in North America, Continental Europe, and the UK & Ireland. Additionally, strategic changes in US foodservice redistribution, price competition, and inventory ownership transitions in US retail contributed to the decrease. However, revenue began to stabilise in the second half of the year, with modest volume growth and a reduction in deflationary effects in some regions, although North America continued to experience deflation. Net deflation is expected to continue impacting revenue into 2025.

Operating profit for the company saw a 1.3% increase to GBP 799.30 million in FY24 from GBP 789.10 million in FY23. The operating margin improved to 8.3% from 8.0% in the previous year, largely due to higher-margin acquisitions and underlying margin enhancements.

Recent Business Update

On 03 March 2025, Bunzl provided an update on its 2025 share buyback program, announcing the completion of the first GBP 50 million tranche. The company has also committed to repurchasing an additional GBP 150 million in shares, with the program set to be completed by 31 December 2025.

Company Outlook

Bunzl anticipates higher revenue growth in 2025 at constant exchange rates, supported by acquisitions and modest underlying growth, despite economic and geopolitical challenges. The operating margin is expected to stay stable and remain significantly higher than pre-pandemic levels. The company projects a 26.0% tax rate and net finance expenses of around GBP 115 million for the year.

Top 10 Shareholders

The top 10 shareholders of BNZL collectively own approximately 31.56% of the total shares. Schroder Investment Management Ltd. (SIM) holds the largest stake at around 5.06%, followed by Capital Research Global Investors with approximately 4.87%.

Stock Information

The stock has declined by approximately 8.83% in the last month and 15.67% over the past six months. With a 52-week low of GBX 2,880.50 and a high of GBX 3,732.00, it is currently trading below the average of these values, closing at GBX 3,076 as of 7 March 2025.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 07 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.