By Chandini Monnappa

(Reuters) -British business supplies distributor Bunzl cut its 2025 forecast and paused its share buyback programme on Wednesday, citing pressure on its North American business, sending shares down 25.7% to a near four-year low.

The company said it was excluding from its outlook any potential impact from U.S. tariffs, which have led to dramatic swings in global markets, sparked fears of a recession, and left companies across the globe bracing for a prolonged trade war.

Analysts at Peel Hunt placed their estimates on Bunzl under review and said initial indications suggest about a 10% cut to 2025 profit before tax consensus, with a slightly higher impact on earnings due to the suspension of a share buyback.

Bunzl said it was pausing its previously announced 200 million pound ($265.40 million) share buyback programme for 2025 for the remainder of this year, after purchasing around 115 million pounds of shares in the year to date.

The company said it expects moderate revenue growth in 2025 at constant exchange rates and sees its group operating margin slightly below 8%, down from 8.3% in 2024.

Bunzl, a supplier of products from stationery to food packaging, has been balancing sales declines in the U.S. by raising prices for daily-use items.

On Wednesday, it said it has seen revenue softness across its North American businesses, which primarily serve food service and grocery customers, resulting in pressure on operating margins.

It added that it plans to maintain debt at the lower end of its typical range to preserve financial flexibility.

($1 = 0.7536 pounds)

(Reporting by Chandini Monnappa in Bengaluru; Editing by Nivedita Bhattacharjee and Jan Harvey)

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