Bunzl (LSE:BNZL) reported revenue of £5.93 billion for the six months to 30 June, up 2.9% at constant exchange rates, with underlying revenue growth of 3.2%, in results published Tuesday.
The specialist international distribution and services group said adjusted operating profit rose 8.0% at constant exchange rates to £440.6 million, while operating margin expanded from 7.0% to 7.3%, helped by inflation-driven pricing and the annualisation of synergies from its Nisbets acquisition. Adjusted earnings per share increased 11.4%, and the interim dividend rose 3.0%.
North America Distribution, Bunzl's largest business, delivered 8% underlying revenue growth, supported by new customer wins secured in the second half of 2025 and restored service levels after operational fixes.
"Bunzl has delivered a strong financial performance in the first half of 2026, with underlying growth in all regions and margin expansion," said chief executive Frank van Zanten.
Adjusted net debt to EBITDA stood at 1.8 times, below the group's 2.0 to 2.5 times target range.
Bunzl completed two bolt-on acquisitions so far this year, Scientifix in Australian healthcare and Ghessu Bath in Spanish hospitality, and said acquisition momentum is building into the second half.
The board announced a new £500 million share buyback to be completed over the next 12 months, alongside continued capacity for bolt-on deals.
Bunzl upgraded its 2026 outlook, now expecting operating margin to be broadly flat year-on-year against the 7.6% reported in 2025, with modest adjusted operating profit growth at constant exchange rates.
News Intelligence what this means for the company
Bunzl posted 8% adjusted operating profit growth in H1 2026 with margin expansion to 7.3%, driven by North America's return to 8% underlying revenue growth and annualisation of synergies from Nisbets. The company upgraded 2026 guidance and launched a £500m buyback while maintaining net debt at 1.8x EBITDA—below its 2.0–2.5x target—signalling confidence in both capital deployment and operational momentum.
The North America stabilisation removes a key headwind that had weighed on the stock; margin guidance now expected broadly flat year-on-year (versus prior consensus concern over deflation and transitional costs) reflects pricing power offsetting cost pressures. The £500m buyback and bolt-on acquisition pace signal management's conviction in cash generation and disciplined capital allocation.
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