Bunzl PLC

Latest Results (22.09.2025):

Bunzl PLC reported its financial results for the first half of 2025, showing profits in line with expectations despite a challenging economic environment. The company has made significant progress in improving operational performance, particularly in North America and Continental Europe, and remains committed to its growth and shareholder return strategies.

Revenue Growth

Bunzl PLC achieved a 4.2% increase in revenue at constant exchange rates, rising to £5,759.6 million compared to £5,711.5 million in the first half of 2024. Underlying revenue remained broadly stable despite a challenging operating environment.

Operating Margin Decline

The operating margin decreased from 8.0% to 7.0%, driven by specific large businesses in North America and Continental Europe. Adjusted operating profit declined by 7.6% at constant exchange rates to £404.5 million, while reported operating profit fell by 14.0% to £300.5 million.

Operational Improvements

Bunzl has made good progress with actions aimed at improving operational performance in North America and Continental Europe. Early indicators show positive results in line with expectations, supporting an improved performance outlook for the second half of the year.

Acquisitions and Growth

The company announced five acquisitions year-to-date, including Quindesur and Gisa, with a committed spend of approximately £120 million. Bunzl's acquisition pipeline remains active, highlighting continued opportunities for expansion.

Debt and Leverage

Adjusted net debt to EBITDA stands at 1.9x, with leverage expected to be at the lower end of the target range of 2.0 to 2.5 times by year-end, following potential acquisition spend and the completion of the 2025 share buyback programme.

Share Buyback and Dividends

Bunzl has resumed its share buyback programme, aiming to complete the remaining £86 million of the previously announced £200 million in the second half of the year. Additionally, the interim dividend per share increased by 0.5% to 20.2p, with an expected dividend cover of approximately 2.4 times for 2025.

Outlook for 2025

The company reiterated its 2025 outlook, anticipating moderate revenue growth and a moderated decline in operating margins in the second half of the year. Bunzl remains confident in its resilience and ability to deliver consistent growth in the medium term.