Bunzl hikes dividend and adds buyback but shares fall to seven-month low
Published: 08:56 03 Mar 2025 GMT
Bunzl PLC (LSE:BNZL) shares fell 6.7% to 3,412p, around a seven-month low, even though it announced final results slightly weaker than expected, though with a £200 million share buyback and a 32nd consecutive annual dividend increase.
The distributor of non-food consumables, such as food packaging, disposable cups, gloves and sanitary equipment had issued a profit warning in December when it said profitability was being hit by "more persistent" deflation than it had previously anticipated.
Today, the FTSE 100-listed group said underlying trends were improving in the second half of the year, "driven by slight volume growth and a small easing of deflation".
Profit before tax for 2024 rose 2% to £873 million, slightly below the consensus forecast of £875 million.
The final dividend was increased 7.4% to 53.8p per share.
On the outlook, guidance was reiterated for 2025 for "robust growth" in revenue at constant exchange rates, driven by announced acquisitions and slight underlying revenue growth, while group operating margin is expected to be maintained in-line with last year.
