Bunzl slips despite rise in American revenues

By the Editorial Team · Wednesday, September 2, 2026

Bunzl reported a 3 percent rise in revenues to £5.9 billion and a 10 percent increase in pre-tax profit to £380 million for the first half of the year, alongside a 3 percent dividend increase and a reinstated £500 million share buyback plan. Despite these positive results, investor concerns over margin pressures and modest growth outlooks led to a 1.8 percent drop in the share price, highlighting ongoing challenges in competitive and inflationary conditions.

Bunzl, the FTSE 100 distribution group, reported a 3 percent increase in revenues to £5.9 billion and a 10 percent rise in pre-tax profit to £380 million for the six months ending in June. Despite these gains, the company's shares fell 1.8 percent to close at £27.42, valuing the business at approximately £8.8 billion.

The company, which supplies cleaning materials to workplaces, disposables to the hospitality sector, and packaging to retailers, also raised its interim dividend by 3 percent to 20.8p per share. Additionally, Bunzl reinstated a £500 million share buyback program set to run over the next 12 months, aiming to support its share price.

Bunzl has historically grown alongside the economies in which it operates, supplementing organic growth with acquisitions of smaller companies across various sectors and geographies. However, the company issued a profit warning last year after encountering difficulties in its North American distribution business, the company’s most significant market.

Frank van Zanten, Bunzl’s chief executive for the past 11 years, stated that the issues in the US had been resolved, with service levels restored and employee morale improved. Nevertheless, he noted ongoing challenges in the corporate environment, emphasizing that inflationary pressures continue to weigh on profit margins. Van Zanten highlighted the difficulty in passing higher costs on to customers amid competitive market conditions.

“The macroeconomic backdrop remains uncertain with challenging end markets and volatile input prices,” he said. Van Zanten also reiterated that “attractive bolt-on acquisitions are a priority for the business,” mentioning an active pipeline and growing acquisition momentum.

Looking ahead to the full year, Van Zanten projected only modest underlying revenue growth, primarily driven by acquisitions, with operating margins expected to remain at last year’s level of 7.6 percent. This would result in a modest increase in operating profits.

Some analysts have expressed criticism of Bunzl for not doing more to improve profit margins through cost-cutting, signaling investor concerns that the company may be facing difficulties in sustaining stronger earnings growth despite the revenue and profit increases reported.

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