Bunzl PLC (LSE:BNZL) upgraded its outlook for the 2026 financial year after reporting stronger-than-expected trading in the first half and completing a small acquisition in Australia.
The FTSE 100 distribution and services group said revenue in the six months to 30 June is expected to rise about 4% at constant exchange rates, including underlying revenue growth of around 3%.
Growth was supported by inflation in certain product categories during the second quarter, alongside encouraging volume growth. Higher volumes were driven by North America, where distribution businesses continued to make operational progress and benefited from business wins secured late last year.
Acquisitions, net of disposals, are expected to contribute around 1% to first-half revenue growth, while currency movements are expected to have a broadly neutral effect.
The company expects good year-on-year growth in adjusted operating profit in the first half at constant exchange rates. Operating margin is expected to increase modestly, helped by inflation-related pricing effects and the annualisation of synergies from Nisbets.
Bunzl said it now expects full-year revenue growth at constant exchange rates to be driven by "modest" underlying growth, supported by some inflation and a small contribution from acquisitions. Its operating margin guidance is unchanged, with margin still expected to be "slightly down" year-on-year.
Chief executive Frank van Zanten said: "Bunzl is expecting to deliver an improved performance in the first half, with continued underlying growth and robust profitability, demonstrating the resilience and agility of our business model."
The group also completed the acquisition of Scientifix Group in April. The Australian distributor of life sciences and biotechnology products is expected to generate revenue of about AUD18 million, equivalent to roughly £9 million, in the 12 months to June 2026.
