Strength in Bunzl’s North America business during the first half has helped the group raise its full-year guidance and commence a £500m share buyback.
Following a torrid 2025 for Bunzl shares, the group has seen its stock recovery gradually through 2026, and the 2% increase in shares on the back of these results will be more than welcome.
Revenue rose 3% to £5.93bn in the six months to 30 June, with underlying growth of 3.2%, a fifth consecutive quarter of growth, supported by both higher volumes and a return of inflation in product costs.
Adjusted operating profit climbed 8% at constant currency to £440.6m, and the operating margin widened to 7.3% from 7.0%. Adjusted earnings per share rose 11.4% to 87.7p, and the interim dividend was lifted 3% to 20.8p.
The main factor in the improved performance was the turnaround at North America Distribution, Bunzl’s biggest business, which had weighed on the group last year.
With service levels restored and its salesforce re-engaged, the unit returned to growth, delivering an 8% rise in underlying revenue, driven by new customer wins and volume gains. Bunzl cautioned, however, that much of the first-half margin benefit from inflation was likely to prove temporary.
On the strength of the performance, the company upgraded its 2026 outlook, now expecting a broadly flat operating margin and modest adjusted profit growth, and said its low leverage supported the new £500m buyback alongside its continued appetite for bolt-on acquisitions.
It has completed two deals so far this year and expects acquisition activity to pick up in the second half.