British distributor Bunzl raises its 2024 profit forecast, citing strong demand for its own brand and benefits from recent acquisitions. A £250 million share buyback plan is also announced.
Bollywood Fever: British business supplies distributor Bunzl has raised its annual adjusted operating profit forecast for 2024, driven by strong demand for its own-brand products and successful acquisitions.
The company, which supplies a wide range of products from food packaging to stationery, announced the revised outlook on Tuesday.
Bunzl now expects its adjusted operating profit in 2024 to show a “strong increase” compared to 2023, an upgrade from its earlier forecast of slightly exceeding 2023 levels.
This optimism comes as the company continues to benefit from higher prices for everyday items and the growing market penetration of its own brand, along with the performance of recently acquired businesses.
In addition to the profit forecast, Bunzl has unveiled a £250 million ($329.98 million) share buyback plan, with a further £200 million return anticipated by the end of the year.
This move reflects the company’s confidence in its financial position and commitment to delivering value to its shareholders.
While Bunzl remains bullish about its overall revenue growth, the company has noted a small decline in underlying revenue, primarily due to challenges in its North American operations.
The North American market has been affected by volume reductions and deflation, which continue to weigh on performance.
Despite these challenges, Bunzl expects “robust” annual revenue growth, supported by its strategic initiatives and resilient demand for its products.
As the company moves forward, it will continue to leverage its acquisitions and brand strength to drive profitability and shareholder returns.
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