No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Bunzl lifted its full-year margin outlook on Tuesday as it reported a rise in first-half profit and revenue, with underlying growth in all regions.
In the six months to the end of June, adjusted pre-tax profit rose 10.2% to £380.9m, while revenue ticked up 3% to £5.9bn. Bunzl said underlying revenue was supported by both volume growth, led by North America, and inflation, driven by product cost increases in the second quarter.
Adjusted operating profit was ahead 8.9% at £440.6m, the interim dividend per share was upped by 3% to 20.8p and the company announced a new £500m buyback programme to be completed over the next 12 months.
For the 2026 full year, Bunzl now expects group operating margin to be broadly flat year-on-year, having previously guided to a modest decline.
Chief executive Frank van Zanten said: "Bunzl has delivered a strong financial performance in the first half of 2026, with underlying growth in all regions and margin expansion. It is pleasing to see growth being led by North America, including in our Distribution business, which is testament to the operational progress that has been made with service levels restored and our teams fully engaged and motivated.
"The macroeconomic backdrop remains uncertain with challenging end markets and volatile input prices. The group's robust first half performance, as well as its resilience and agile business model, gives us the confidence to upgrade our guidance for 2026. We continue to expect 2026 to be a foundation for future profit growth and I am confident in our ability to deliver consistent compounding growth in the medium-term.
"Attractive bolt-on acquisitions are a priority for the business, with our pipeline remaining active and acquisition momentum building. As the business has delivered an improved performance, and with strong cash generation contributing to significant headroom, our capital allocation policy also supports a new £500 million buyback, whilst maintaining capacity for high return acquisitions."
At 0807 BST, the shares were up 2.9% at 2,874p.
See latest RNS on Investegate
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.