Bunzl's annual profit drops as tariff disruptions hit key North America division

Annual Financial Performance and Market Impact

Profit Decline and Contributing Factors

March 2 (Reuters) - UK business supplies distributor Bunzl reported a 9.8% drop in annual adjusted pretax profit on Monday, as weaker trading conditions in its key North American market were compounded by tariff-related supply-chain disruptions.

Cost-Cutting and Product Mix Adjustments

Bunzl has been cutting costs and reshaping its product mix in North America, its largest market, where adjusted operating profit fell 11.5% at constant exchange rates due to execution issues in its biggest food service and grocery business amid a worsening macro backdrop.

Future Outlook and Guidance

2026 Revenue and Margin Expectations

The company reiterated its 2026 outlook, saying it expects moderate revenue growth at constant exchange rates, while operating margin is seen declining slightly year-on-year.

Company Overview and Financial Results

Global Operations

Bunzl, which supplies packaging, cleaning and safety products to customers in the food service, retail and healthcare sectors across 32 countries, reported annual adjusted pretax profit of 787.1 million pounds ($1.05 billion), compared with year-ago 872.9 million pounds a year ago. 

Currency Exchange Rate

($1 = 0.7490 pounds)

Reporting Credits

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