Bunzl, a major UK-listed company, saw a staggering £2bn drop in its market value due to uncertainties surrounding Donald Trump’s tariffs. The company, which supplies everyday goods to other businesses, cited soft sales in North America and expressed disappointment in its first-quarter performance amidst a challenging trading environment. CEO Frank van Zanten highlighted the need for decisive action to enhance the group’s performance, particularly in North America.
Bunzl now anticipates moderate revenue growth and an operating margin below 8% for the year, compared to 8.3% in 2024. This projection is a shift from previous expectations of robust revenue growth and maintaining the 2024 operating margin. Additionally, the company announced a pause in its share buyback program for the rest of 2025 after already spending £115m on repurchasing its shares this year.
The impact of Trump’s trade policies extends beyond Bunzl, with other companies like recruiter Hays also feeling the effects of increasing macroeconomic uncertainty. Hays reported a 9% decrease in net fees for the quarter ending on March 31 and expressed concerns about future hiring challenges. The recruitment sector as a whole is bracing for difficulties ahead, with companies like Robert Walters and PageGroup adjusting their strategies in response to the unpredictable conditions created by the ongoing trade war.
The broader financial markets reflected this uncertainty, with European and Asian shares experiencing declines on Wednesday. The FTSE 100, Dax, and Cac indices all saw drops, signaling the widespread impact of geopolitical tensions on global economic confidence.
