Bunzl's shares plummeted to a four-year low following a profit warning, making it the first FTSE 100 company to stop a share buyback since 2020. The company's recent quarter showed only 0.8% sales growth, and a heavy reliance on acquisitions is raising red flags for future performance. Management has also revised profit margin expectations downward, indicating a potential reduction of about 5% in underlying profit forecasts, now projected at £965 million, slightly below last year's earnings. This shift highlights broader concerns over Bunzl's growth strategy amidst challenging market conditions.
Shares in Bunzl hit a four-year low after a profit warning and termination of its share buyback scheme, marking a significant decline in investor confidence.
The profit warning reflects slower sales growth in the US and UK, raising concerns about the company’s reliance on acquisitions for growth.
Management's current expectations suggest a downgrade in underlying profit forecasts by around 5%, indicating a challenging year ahead for Bunzl.
The chief executive’s earlier optimism about 'robust' sales growth for the upcoming year stands in stark contrast to the company’s current performance.
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