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Highlights

  • Bunzl's revenue grew by 4.2% at constant exchange rates in latest half, with underlying revenue broadly stable.

  • Operating margin declined to 7.0% from 8.0%, while adjusted operating profit fell 7.6% at constant exchange rates.

  • Five acquisitions announced year-to-date, with committed spend of approximately £120 million.

Bunzl plc, the specialist international distribution and services Group, has announced its financial report for the six months ended 30 June 2025. The company delivered revenue growth at constant exchange rates, maintained stability in underlying revenue, and advanced its strategic priorities, including acquisitions and digital transformation, despite a challenging operating environment.

For the first half of 2025, revenue increased by 4.2% at constant exchange rates, while underlying revenue remained broadly stable. The Group reported a decline in operating margin to 7.0% from 8.0% in the prior year, primarily driven by performance challenges in certain large businesses in North America and Continental Europe. As a result, adjusted operating profit decreased 7.6% at constant exchange rates, while reported operating profit was down 14.0%.

Bunzl is undertaking several measures to address regional performance issues. In North America, actions include leadership changes, cost savings, improved engagement with branded suppliers, rebalanced decision-making between central and local teams, and an expanded own-brand portfolio. Early results from these initiatives are in line with expectations. In Continental Europe, cost reduction initiatives, pipeline management improvements, and procurement optimisation are being prioritised, with new business wins anticipated in the second half of the year.

The Group also advanced efficiency measures, including 16 warehouse consolidations and relocations, and investments in automation and digital solutions. During the first half of 2025, 75% of orders were processed digitally, compared with 73% in the prior year period, contributing to customer retention and low-touch ordering growth.

Strategically, Bunzl completed or announced five acquisitions year-to-date, including its entry into the healthcare market in Chile and the acquisition of Guantes Internacionales, S.A. de C.V. (“Gisa”). The total committed spend for these transactions amounted to approximately £120 million. The pipeline for further acquisitions remains active, underlining the Group’s growth agenda.

The Group ended the first half with adjusted net debt to EBITDA of 1.9x, positioning leverage towards the lower end of its target range of 2.0x to 2.5x by year-end, even after accounting for acquisition expenditure and the continuation of its share buyback programme. Bunzl resumed buybacks and intends to complete the remaining £86 million of its previously announced £200 million 2025 programme in the second half, having already executed £114 million in the first half.

The Board declared an interim dividend per share increase of 0.5%, consistent with its commitment to sustainable annual dividend growth. Dividend cover for 2025 is expected to be around 2.4 times.

Looking ahead, Bunzl reiterated its guidance for 2025. Moderate revenue growth at constant exchange rates is expected, largely driven by acquisitions, with underlying revenue remaining broadly flat. The full-year operating margin is anticipated to be moderately below 8.0%, compared with 8.3% in 2024. The second half is expected to deliver a moderated year-on-year operating margin decline, supported by regional performance improvements, synergy benefits from the Nisbets acquisition, and favourable comparatives. Other outlook items include a net adjusted finance expense of approximately £120 million and a full-year effective tax rate of around 26%.