Bunzl shares slide on margins warning as US ops weigh

Shares in Bunzl slipped on Monday as the distribution specialist said it expected a slight fall in operating margin after posting a 10% rise in annual profits, as revenues were hit by weaker trading at its North American operations.

Pre-tax profit for 2023 came in at £698.6m on revenue of £11.8bn, down 2%. Shareholders will receive 68.3p a share.

The acquisition-hungry group also announced two more purchases – an 80% stake in Bristol-based catering giant Nisbets for £338m and Pamark in Finland for an undisclosed sum.

Bunzl also maintained guidance for 2024.

“Following a slower than expected start to the year in North America, we now expect to deliver slight revenue growth in 2024, at constant exchange rates, driven by acquisitions announced in 2023; with underlying revenue, which is organic revenue adjusted for trading days, declining slightly,” said chief executive Frank van Zanten.

“Group operating margin is now expected to be slightly below 2023.”

Reporting by Frank Prenesti for Sharecast.com