Bunzl (BNZL) Q2 2026 TU earnings summary

Executive summary

• Group revenue for H1 2026 is expected to grow by around 4% at constant exchange rates, with underlying revenue growth of about 3%.

• Volume growth is driven by North America, especially in the distribution business, supported by new business wins.

• Price increases were implemented in May and June across certain categories due to product cost inflation.

• Operational progress and robust profitability are expected, with resilience and agility highlighted.

• The acquisition of Scientifix Group in Australia expands the healthcare and Life Sciences sector in Asia Pacific.

Financial highlights

• Net acquisitions are expected to contribute around 1% to group growth in H1 2026.

• Adjusted operating profit is expected to show good year-on-year growth at constant exchange rates, with a modest operating margin expansion in H1.

• Operating margin progression is partly driven by inventory profit impact in an inflationary environment, expected to be temporary.

• H1 growth is about two-thirds volume-driven and one-third price-driven; in Q2, the split is roughly 50/50.

• Currency impact on revenue is expected to be neutral at actual exchange rates.

Outlook and guidance

• Upgraded 2026 outlook: revenue growth at constant exchange rates to be driven by modest underlying growth, some inflation, and a small benefit from acquisitions.

• Operating margin guidance is unchanged, expected to be slightly down year-on-year, relative to last year's 7.6% margin (excluding share-based payment credits).

• Margin pressure is anticipated in H2 if prices normalize, with some lingering cost base inflation, particularly in fuel costs.

• 2026 is seen as a foundation for future profit growth, with an active acquisition pipeline.

• Leverage expected to be a bit below two times at half year.