Bunzl PLC (LSE:BNZL) provided investors with a more reassuring update on Tuesday, saying that trading had been in line with expectations in recent weeks, having warned on profits two months ago.
The FTSE 100-listed distributor said underlying revenue was likely to be "broadly flat" in the first six months of 2025 compared to last year, with total group revenue up around 4% at constant exchange rates, or up to 1% higher at actual exchange rates.
Operating profit margin was around 7%, which matches the levels indicated at the April profit warning.
For the full year, Bunzl still expects "moderate revenue growth", driven by acquisitions already announced and broadly flat underlying revenue, with operating margins seen creeping up to almost 8%, compared to 8.3% last year.
Margins in the second half are expected to be "seasonally higher" and to benefit from activities to improve performance in North America, which had been the main source of challenges that led to the profit warning.
"Alongside a macroeconomic backdrop that remains uncertain, the group is trading in line with our expectations," said chief executive Frank van Zanten.
"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."