Bunzl (BNZL) H1 2026 earnings summary

Executive summary

• Delivered strong H1 2026 results with broad-based volume growth, led by North America Distribution and effective inflation management.

• Operational improvements and agility restored in key business areas, especially North America, supporting resilience and growth.

• Five consecutive quarters of underlying revenue growth achieved.

• 2026 positioned as a foundation for future profit growth, with strong confidence in medium-term opportunities.

• Announced a GBP 500 million (£500m) share buyback, reflecting strong cash generation and excess cash.

Financial highlights

• Revenue growth at constant currency was 4.1% in H1 2026; underlying revenue growth was 3.2%.

• Adjusted operating profit rose 8% year-on-year to GBP 441 million (£440.6m); operating margin increased to 7.3%.

• Gross margin improved to 29.4% from 28.8% prior year.

• Free cash flow increased 5.6% to £256.8m–£257m; cash conversion at 90%.

• Interim dividend per share up 3% year-on-year to 20.8p.

Outlook and guidance

• 2026 outlook upgraded: expect modest underlying revenue growth and broadly flat operating margin year-on-year.

• Modest adjusted operating profit growth anticipated at constant exchange rates.

• Net finance expense guidance: £125m–£130m; tax rate: 26%.

• H2 margins expected to decline due to unwinding of temporary inventory gains and normalization of selling prices.