UK's Bunzl forecasts modest profit growth, improves margin outlook

Bunzl Public

01/09/2026 08:39

Sept 1 (Reuters) - British business supplies distributor Bunzl BNZL.L on Tuesday forecast modest growth in adjusted operating profit this year, supported by improved performance in its North American business and price increases.

Here are a few details:
The update comes after U.S. activist investor Elliott reportedly built a stake in Bunzl, as the company pushes ahead with a turnaround of its North American business, its biggest market, and raises prices to offset rising costs linked to the Middle East war.
Bunzl now expects its operating margin at constant exchange rates to be broadly in line with the 7.6% reported in 2025. It had previously forecast a slight decline. 
Shares in the FTSE-100 listed company rose nearly 3% to £28.62 in early trading. 
Growth in North America was led by its distribution business, which benefited from new customer wins, improved service levels and higher volumes. 
Inflation also supported first-half margins, though the company said much of that benefit was likely to be temporary.
"The macroeconomic backdrop remains uncertain with challenging end markets and volatile input prices," CEO Frank van Zanten said in a statement.
Bunzl also announced a £500 million ($677 million) share buyback.
Adjusted profit before tax rose 8.9% at constant exchange rates to £380.9 million in the six-month period ended June 30.
($1 = £0.7386)

 (Reporting by Neeshita Beura in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Neeshita.Beura@thomsonreuters.com))