Bunzl Profit Drops Significantly in Q1, Cuts 2025 Guidance
Why we think this is bad
The trading update from Bunzl plc indicates that the company's adjusted operating profit declined significantly in the first quarter of 2025, which is a concerning development. The company has also reduced its guidance for the full year 2025, citing operational challenges in its largest business in North America. This suggests the company is facing headwinds that are impacting its profitability and growth prospects.
Key Points
- Adjusted operating profit down significantly in Q1
- Operational challenges in largest North America business
- 2025 guidance reduced - moderate revenue growth and lower operating margin expected
Summary
Bunzl plc, the specialist international distribution and services Group, has provided an update on its trading for the first quarter of 2025. The company reported that its adjusted operating profit was down significantly year-on-year in the first quarter, reflecting an operating margin decline driven by performance issues in North America and Continental Europe. As a result, the Group has reduced its 2025 guidance, now expecting moderate revenue growth and a moderately lower operating margin compared to 2024.