International distribution group Bunzl (LON:BNZL) raised its FY26 operating margin outlook after positive H1 trading. The firm now expects margins to be flat rather than lower due to ‘modest’ growth, supported by demand in North America.
Bunzl reports positive H1 trading
For the six months to June, Bunzl reported 3% growth in revenue to £5.93 billion, in line with forecasts. Adjusted operating profit rose 8.9% to £440.6 million, while adjusted pre-tax profit rose 10.2% to £380.9 million.
The firm said underlying growth was driven both by volume growth in North America and price increases. Bunzl has now posted positive underlying revenue growth for five consecutive quarters.
North America Distribution, which accounts for just over 50% of sales, registered 2.5% underlying growth in revenue. Continental Europe, which represents 20% of sales, registered a 3.5% increase in revenue and an 8.9% increase in operating profit.
Bunzl H1 2026 results
| H1 2026 | H1 2025 | Change | |
| Revenue (£m) | 5,933 | 5,760 | 3% |
| Adj operating profit (£m) | 440.6 | 404.5 | 8.9% |
| Adj pre-tax profit (£m) | 380.9 | 345.6 | 10.2% |
| Adj EPS (p) | 87.7 | 77.8 | 12.7% |
| DPS | 20.8 | 20.2 | 3% |
Source: Bunzl plc
What did the CEO say?
Commenting on the H1 results, CEO Frank van Zanten said all regions had posted underlying revenue growth and margin expansion. This was despite the continued uncertain macroeconomic backdrop which caused ‘challenging end markets and volatile in put prices’, said the CEO.
Van Zanten added: ‘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.’
The group operating margin will now be broadly flat at 7.6% instead of declining as per the firm’s previous guidance. Revenues will grow at a ‘modest’ rate supported by ‘some inflation’ and a small benefit from acquisitions.
We previewed Bunzl and flagged its ability to grow revenue at low-to-mid single digits whatever the economy does. Yet again the firm has delivered, and there’s a modest upgrade to the margin forecast to boot.
Bunzl is a classic ‘get rich slowly’ stock. That said, anyone who took advantage of the 2025 sell-off has done very nicely. Without any hype, the shares have gone from around £20 in January to over £28 today.
