23rd Jun 2026 08:11
(Alliance News) - Bunzl PLC on Tuesday upgraded its full-year revenue guidance after reporting stronger-than-expected trading in the first half, helped by inflation-linked pricing, improving volumes in North America and contributions from acquisitions.
The London-based distribution and outsourcing said it now expects 2026 revenue growth at constant exchange rates to be driven by modest underlying revenue growth, supported by some inflation and a small contribution from acquisitions.
Bunzl left its operating margin guidance unchanged and continues to expect margin to be slightly lower year-on-year.
For the six months ending June 30, Bunzl expects revenue growth of around 4% at constant exchange rates, including underlying revenue growth of about 3%.
The company said growth was supported by inflation in certain product categories during the second quarter, reflecting higher product costs linked to geopolitical events.
"We expect growth to be supported by inflation across certain categories in the second quarter, with product-cost increases driven by geopolitical events, and we are also seeing encouraging volume growth," Bunzl said.
It added that volume growth was driven by North America, particularly within its Distribution business.
Bunzl said its North American Distribution division continued to make operational progress following actions taken to improve service levels and responsiveness, while also benefiting from new business wins secured towards the end of 2025.
Acquisitions, net of disposals, are expected to contribute around 1% of first-half revenue growth, while foreign exchange is expected to have a broadly neutral effect.
The company expects good year-on-year growth in adjusted operating profit at constant exchange rates in the first half, with operating margin increasing modestly due to inflation-related benefits and the annualisation of synergies from the acquisition of Nisbets.
Chief Executive Officer Frank van Zanten said: "Bunzl is expecting to deliver an improved performance in the first half, with continued underlying growth and robust profitability, demonstrating the resilience and agility of our business model."
He added that the North American Distribution business had achieved "the good operational progress we had expected".
Bunzl said it continues to view 2026 as "a foundation for future profit growth".
The company also announced the completion of the acquisition of Scientifix Group, an Australian distributor serving the life sciences and biotechnology sectors.
Scientifix is expected to generate revenue of AUD18 million, approximately GBP9 million, in the 12 months ending June 2026.
Shares in Bunzl opened 1.7% higher at 2,506.00p in London on Tuesday.
By Eva Castanedo, Alliance News reporter
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