Distribution giant Bunzl has said revenues are set to rise on the back of acquisitions, despite the “uncertain” economic backdrop.
The FTSE 100 company saw shares move higher on Tuesday morning as a result.
It came as Bunzl also announced its latest acquisition deal to buy Brazilian food packaging business Solupack.
The proposed takeover of Solupack, which generated £15 million of revenues last year, will “enhance our offering to customers”, the company said.
Bosses at Bunzl said it is “remaining active” regarding more potential acquisitions, following its third takeover deal this year.
On Tuesday, Bunzl said revenue for the first half of 2025 is expected to be around 4% higher than the previous year, driven by acquisitions.
It added that profit margins are set to be in line with previous guidance of 7%.
The update comes two months after the company cut its profit forecast for 2025 and paused its share buyback in the face of tariff pressures on its North American business.
Frank van Zanten, chief executive of Bunzl, said: “Alongside a macroeconomic backdrop that remains uncertain, the group is trading in-line with our expectations.
“Actions are under way to improve performance in the group, particularly in our largest business in North America and in Continental Europe, and we anticipate improvement in the second half of the year.
“The group’s compounding growth strategy and resilient business model underpin Bunzl’s long-term track record of delivery and the group continues to be well placed to navigate periods of macroeconomic uncertainty given our focus on essential products, the depth of our customer and supplier relationships and our sector and geographic diversification.”
Richard Hunter, head of markets at Interactive Investor, said: “The savage share price reaction to the profit warning in April left a sour taste in the mouth for investors.
“Indeed, the best that can be said for this update is that conditions do not appear to have worsened, with the shares edging higher accordingly.”
