One of UK’s largest companies sees £2bn wiped off shares through Trump tariffs impact
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Major UK distributor has £2bn wiped off shares after tariff warning
- Bunzl, a FTSE 100 distribution company, experienced a 25 per cent share price drop, wiping £2bn off its market value after reporting a lower annual forecast and warning over the “uncertainty” caused by Trump's tariffs.
- The company faces a challenging trading environment, particularly in the US, its largest market, due to potential import costs and a weak dollar.
- Higher input costs, price pressure, and the loss of a customer in the US have further impacted Bunzl's profitability.
- Bunzl halted its £200m share buyback program, a move not seen in a FTSE 100 company since 2020, reflecting market nervousness.
- Despite reporting higher earnings for the past year, Bunzl's pre-tax profit declined, and revenues were slightly lower due to deflation and increased competition in the US and Europe.