UK's Bunzl warns of slight margin drop in 2026

Dec ‌17 (Reuters) - Business supplies distributor Bunzl forecast a ‍slight ‌year-on-year drop in its 2026 operating margin on ⁠Wednesday as broader ‌macroeconomic uncertainties weigh on its business, while reiterating that 2025 profit should meet expectations.

The company, which ⁠supplies packaging, cleaning and safety products to customers in the ​food service, retail and healthcare ‌sectors, is tightening execution ⁠in North America - its largest market - through cost-cutting and product-mix measures.

Its strategy also includes ​acquiring smaller businesses to strengthen operations.

Bunzl expects momentum to improve in the fourth quarter, supported by new business wins in North America.

"After ​a ‍lower level of ​acquisition spend in 2025, reflective of timing and driven by macroeconomic uncertainty, and with our pipeline remaining active, we look forward to an improved year for acquisitions in 2026," ⁠CEO Frank van Zanten said.

While margins in 2026 are expected to ​be lower, Bunzl projected moderate revenue growth at constant exchange rates.

For the year ending December 31, the company expects revenue ‌growth of 2% to 3%.

(Reporting by Nithyashree R B in Bengaluru; Editing by Sumana Nandy)