Bunzl PLC (LSE:BNZL), the FTSE 100-listed distributor of consumable products, revealed a decline in profit in the first half of the year but resumed its share buyback.
The buyback had been scrapped alongside a profit warning in April due to operational challenges in North America, but chief executive Frank van Zanten said actions taken in the largest American business "have re-energised the team and we are seeing early positive indicators of success".
For the first six months of the year, revenue came in at £5.76 billion, up 0.8% or 4.2% at constant currency rates, while adjusted operating profit declined 11.2% (7.6% at CCR) to £404.5 million, with the operating margin falling from 8.0% to 7.0%.
Van Zanten said the "profit momentum seen through the first half [was] in-line with our expectations" and "while the benefits of some actions are not expected to drive improvements until well into 2026, we are focused on creating a stronger platform for its long-term profitable growth".
Revenue growth is expected to be "moderate" this year at constant exchange rates, driven by announced acquisitions and "broadly flat" underlying revenue, while group operating margin is seen "moderately below 8.0%", compared to 8.3% last year.
The buyback has been resumed with the intention of completing the remaining £86 million of previously announced £200 million programme in the second half of the year.
An interim dividend of 20.2p per share was also declared, up 0.5%.
Bunzl wrapped up its fourth and fifth acquisitions in the past two months: Spain's Quindesur, a distributor of foodservice and cleaning products, last month and this morning added Gisa, a Mexican distributor of personal protective equipment.
Both businesses complement existing Bunzl units and strengthen the group's presence in those regions, it said, adding firms that respectively made revenue equivalent to £12 million and £17 million last year.
Van Zanten said the acquisition pipeline remains "active", and the board sees "significant opportunity for continued expansion".