Bunzl (BNZL) Trading Update summary

Trading performance and outlook

• Revenue for the first half of 2025 expected to rise about 4% at constant exchange rates, and up to 1% at actual rates, driven mainly by acquisitions with underlying revenue broadly flat.

• Group operating margin anticipated around 7.0%, in line with guidance, with adjusted operating profit decline as expected.

• 2025 guidance reiterates moderate revenue growth at constant exchange rates, with operating margin moderately below 8.0% versus 8.3% in 2024.

• Second half operating margin expected to be seasonally higher, benefiting from performance improvement actions.

• Fewer trading days are expected to have a slight impact on revenue.

Strategic initiatives and acquisitions

• Agreement signed to acquire Solupack, a Brazilian packaging distributor, generating BRL 106 million (c. £15 million) revenue in 2024.

• Acquisition of Solupack is subject to competition authority clearance and will enhance the offering to food industry customers.

• Solupack marks the third acquisition of the year, with an active pipeline for further deals.

Financial position and capital allocation

• Leverage at end of June expected to be around 2.0x, aiming for the lower end of the 2.0–2.5x net debt/EBITDA target by year-end.

• Capital allocation remains focused on acquisitions and maintaining a resilient balance sheet.