Bug (LSE: BNZL) Actions were often seen a lifeguard for investors in restless times.

With a exhausting line of everyday necessary products – think of food packaging, medical gloves and cleaning sprays to give a miniature taste – and a immense exposure to defensive markets, FTSE 100 The company usually offers resistance in turbulent times. It also provides products in North America, Europe and Asia, which helps earnings with protection against localized problems.

It would be a mistake, however, to suggest that profits are insensitive to wider economic conditions. Indeed, the price of Bunzel shares equalized 27.6% on Wednesday (April 16) after warning that economic uncertainty means that year -round sales will fall below forecasts.

So what happens in the giant of support services? And should investors consider buying a Bunzl shares for DIP?

At the root of sales

Because of what he described as “more difficult economic background“Bunzl announced that revenues increased by 2.6% between October to December at enduring exchange rates. Unfortunately, this enhance was driven by recent acquisitions, because sales underlying the underlying sales dropped by 0.9% year -on -year.

At actual exchange rates, revenues were even worse, of 0.8%.

Bunzl said “The corrected operational profit fell significantly from year to year in the first quarter, reflecting the decrease in the operational margin caused by the results in North America and continental Europe. “

In North America – a region, from which 56% of revenues came last budget – the company said that macroeconomic uncertainty resulted in revenue and operational margins. He noticed that the pressure to margin has especially “Reinforced challenges specific to our largest company, which primarily serves gastronomic and food clients. “

Reduced guidelines

The consequences for Bunzl were earnest, which prompted him to stop the £ 200 million in order to save cash (until now the purchases of shares amounted to 115 million pounds).

The company also cut off its financial guidelines 2025. Now it is tiring “moderate“Increase in revenues in enduring currencies”driven by announced acquisitions and wide flat basic revenues. “Earlier he expected to report”reliable“Sales enhance in the year.

Bunzl added that “The group’s operational margin is expected to be moderately below 8%“Compared to 8.3% in finance 2024. It was predicted that it would be about a flat year on a year before the appearance of recent commercial pressure.

The highest purchase?

While the scale of Bunzl’s problems is quite surprising, can there be a good time now to consider buying Bunzl shares for DIP?

Today’s price correction means that it trades in a forward price (P/E) 11.1 times, which is a significant distance below its five -year medium p/E 18 times.

Times are complex, but Bunzl is a well -run business with a great development history. Indeed, his specialist knowledge in the field of acquisitions led to an exceptional enhance in long -term profits and dividend growth (shareholders withdrawals grew every year for 32 years).

Having said this, I don’t plan to buy Bunzl shares for my own portfolio. Batting in hatches and saving cash is a prudent idea in the current landscape. I am afraid, however, that this may have significant consequences of purchasing budgets – it was committed by 700 million pounds a year until 2027 – therefore the prospect of growth in the near future and later.

Since the risk of trade war is escalating, and the deflating winds in the markets become stronger, Bunzl is for now outside my radar.