Bunzl (LSE:BNZL) upgraded its 2026 full-year guidance in a pre-close trading statement on Tuesday, citing stronger-than-expected first-half momentum and the return of operational progress in its North America Distribution business.
Group revenue in the first half of 2026 is expected to grow by around 4% at constant exchange rates, with underlying growth of around 3%, as product-cost inflation driven by geopolitical events combined with encouraging volume gains, particularly in North America.
Adjusted operating profit is expected to show good year-on-year growth in the first half at constant exchange rates, with operating margin up modestly, supported by the annualisation of Nisbets synergies and the net benefit of second-quarter inflation, much of which Bunzl described as temporary in nature.
For the full year, the group now expects revenue growth at constant exchange rates to be driven by modest underlying growth, supported by some inflation and a small contribution from acquisitions; operating margin guidance is unchanged and is still expected to be slightly down year-on-year.
In April, Bunzl completed the acquisition of Scientifix Group, an Australian distributor to the life sciences and biotechnology sectors, expected to generate revenue of approximately AUD 18 million in the 12 months to June 2026.
"We continue to expect 2026 to be a foundation for future profit growth," said Chief Executive Frank van Zanten.
Bunzl reports its half-year results for the period ending 30 June in due course.
