REG - Bunzl PLC - Trading Statement

BunzlAnnouncement

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RNS Number : 0410O  Bunzl PLC  24 June 2025

24 June 2025

 BUNZL PRE-CLOSE STATEMENT

Trading in-line with expectations; acquisition agreed in Brazil

 

Bunzl plc, the specialist international distribution and services Group, is
updating the market today prior to entering its closed period for the six
months ending 30 June 2025.

Group revenue over the period is expected to be approximately 4% higher than
the prior year, at constant exchange rates, and up to 1% higher at actual
exchange rates. Group revenue growth at constant exchange rates is expected to
be driven by acquisitions, net of disposals, and with broadly flat underlying
revenue over the period(1). We expect Group operating margin over the period
to be in-line with previously published guidance at around 7.0%, with the
expected Group adjusted operating profit decline also in-line with
expectations.

2025 guidance

As per our statement on 16(th) April, the Group expects moderate revenue
growth in 2025, at constant exchange rates, driven by announced acquisitions
and broadly flat underlying revenue. Group operating margin for the year is
expected to be moderately below 8.0%, compared to 8.3% in 2024. The Group's
second half operating margin is seasonally higher and expected to benefit from
actions taken.

Capital allocation update

In May, Bunzl signed an agreement to acquire Solupack, a Brazilian distributor
of own brand packaging solutions to the food industry. In 2024 the business
generated revenue of BRL 106 million (c.£ 15 million), and alongside our
existing business will enhance our offering to customers. The acquisition is
subject to competition authority clearance.

At the end of June we expect our leverage to be around 2.0 times, consistent
with our aim to be towards the lower end of our target range of 2.0 to 2.5
times adjusted net debt to EBITDA by the end of 2025, after potential
acquisition spend.

 

Commenting on today's announcement, Frank van Zanten, Chief Executive Officer
of Bunzl, said:

"Alongside a macroeconomic backdrop that remains uncertain, the Group is
trading in-line with our expectations. Actions are underway to improve
performance in the Group, particularly in our largest business in North
America and in Continental Europe, and we anticipate improvement in the second
half of the year.

I am also pleased to welcome Solupack to the Bunzl family today, our third
acquisition of the year, with our pipeline remaining active. The Group's
compounding growth strategy and resilient business model underpin Bunzl's
long-term track record of delivery and the Group continues to be well placed
to navigate periods of macroeconomic uncertainty given our focus on essential
products, the depth of our customer and supplier relationships and our sector
and geographic diversification."

Enquiries:

  Bunzl plc                                                         Teneo

  Frank van Zanten, Chief Executive Officer                         Martin Robinson

  Richard Howes, Chief Financial Officer                            Giles Kernick

  Sunita Entwisle, Head of Investor Relations and Communications    Tel: +44 (0)20 7353 4200

  Tel: +44 (0)20 7725 5000

1.     The impact of fewer trading days is also expected to have a slight
impact on revenue.

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