Shares in global distribution and outsourcing group Bunzl (BNZL) suffered their worst daily fall in a decade after the firm uncharacteristically cut its earnings guidance and suspended its share buyback.

The FTSE 100 firm saw its stock price plummet more than 25% to £22.90 on 16 April as it blamed ‘a more challenging economic backdrop’ for its disappointing first-quarter performance and lowered the outlook.

‘Since our last update, in a more uncertain macro environment, we have seen some revenue softness across our North American businesses,’ said the firm.

‘This has resulted in operating margin pressure across the business area, and in particular it has amplified challenges specific to our largest business, which primarily services foodservice and grocery customers.’

To reflect the operational challenges facing its largest business in North America, the group lowered its operating margin forecast to below 8% instead of in line with or better than last year’s 8.3% margin.

However, even this may be subject to change as the first-half margin is seen at ‘around 7%’, meaning there needs to be a substantial improvement in the second half of the year, while the latest guidance excludes the potential impact from tariffs or their effect on inflation and economic growth.

The firm also paused its £200 million share buyback programme, with £115 million of shares purchased so far, in order to conserve capital and reduce its gearing.

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