Bunzl Maintains Steady Outlook and Expands in Brazil with Solupack Acquisition

Bunzl plc (LSE:BNZL) confirmed on Tuesday that its performance for the first half of 2025 is tracking in line with internal projections, providing reassurance following a more cautious Q1 outlook. The international distribution and services group also revealed the acquisition of Solupack, a Brazilian packaging distributor, as part of its ongoing expansion strategy.

For the six-month period ending 30 June 2025, Bunzl expects group revenue to rise approximately 4% year-on-year at constant exchange rates and up to 1% at actual exchange rates. The growth is largely attributable to recent acquisitions, while core (underlying) revenue remains broadly unchanged. The operating margin for H1 is projected at around 7%, consistent with previous guidance.

The company reiterated its full-year guidance, expecting modest revenue growth at constant exchange rates in 2025, primarily fueled by acquisitions. Underlying revenue is anticipated to stay relatively flat. Bunzl forecasts the full-year operating margin to land just below 8%, down from 8.3% in 2024, with performance improvements anticipated in the second half.

In an update on its acquisition strategy, Bunzl announced the signing of an agreement in May to acquire Solupack, a Brazilian provider of own-brand food packaging products. Solupack posted revenue of BRL 106 million (around £15 million) in 2024. The deal, pending regulatory clearance, is expected to enhance Bunzl’s footprint in Brazil and complement its existing local operations. This marks the third acquisition for Bunzl so far in 2025.

Financially, Bunzl expects leverage to stand at roughly 2.0x adjusted net debt to EBITDA by mid-year, aligning with the lower end of its target range of 2.0 to 2.5x as it manages acquisition-related capital deployment.

Chief Executive Frank van Zanten noted that despite ongoing macroeconomic uncertainty, Bunzl is performing as anticipated, with a focus on operational enhancements in North America and Europe. He emphasized the company’s commitment to disciplined growth and highlighted that the acquisition pipeline remains active.

Analysts at RBC welcomed the stable trading update, commenting that although execution will be key in H2, the report offers a measure of relief after previous profit warnings.