Bunzl – Half-year report 2026

Financial Report for six months ended 30 June 2025

Good first half performance; 2026 outlook upgraded; £500m buyback announced

Bunzl plc, the specialist international distribution and services Group, today publishes its financial report for the six months ended 30 June 2026.

Highlights include:

• Revenue increased by 2.9% at constant exchange rates*; underlying revenue* was 3.2% higher
• Underlying revenue supported by both volume growth, led by North America, and inflation, driven by product cost increases in the second quarter; Group underlying revenue growth now positive for five consecutive quarters
• Our largest business in North America, “North America Distribution”, delivered encouraging volume growth across customers, supported by new business won in the second half of 2025
• Operating margin* expanded from 7.0% to 7.3%, driven by the net impact of inflation, much of which is expected to be temporary in nature, and supported by the annualisation of initial Nisbets’ synergies
• Adjusted operating profit* increased by 8.0% at constant exchange rates; reported operating profit grew by 16.9%
• Adjusted EPS increased by 11.4%, building on the Group’s track record of delivering long-term compounding growth
• Adjusted net debt to EBITDA* of 1.8 times, below our 2.0 to 2.5 times target leverage range; over the medium-term we aim, on average, to manage leverage within our target range
• Interim dividend per share increased by 3.0%; consistent with our long standing commitment to sustainable annual dividend growth
• Two bolt-on acquisitions completed year-to-date; we continue to expect 2026 to be an improved year for acquisitions compared to 2025, with a more active second half as deal momentum is building; pipeline remains active
• New £500m buyback programme to be completed over the next 12 months reflects our policy of distributing excess cash whilst maintaining headroom for high return bolt-on acquisitions, which remain a priority
• 2026 outlook upgraded; continue to expect modest underlying revenue growth, and now expect operating margin to be broadly flat year-on-year≠; expect modest adjusted operating profit growth year-on-year, at constant exchange rates≠

Commenting on today’s results, Frank van Zanten, Chief Executive Officer of Bunzl, said:

“Bunzl has delivered a strong financial performance in the first half of 2026, with underlying growth in all regions and margin expansion. It is pleasing to see growth being led by North America, including in our Distribution business, which is testament to the operational progress that has been made with service levels restored and our teams fully engaged and motivated. Our teams around the world have again demonstrated relentless customer focus alongside their ability to effectively manage an inflationary environment.

The macroeconomic backdrop remains uncertain with challenging end markets and volatile input prices. The Group’s robust first half performance, as well as its resilience and agile business model, gives us the confidence to upgrade our guidance for 2026. We continue to expect 2026 to be a foundation for future profit growth and I am confident in our ability to deliver consistent compounding growth in the medium-term.

Attractive bolt-on acquisitions are a priority for the business, with our pipeline remaining active and acquisition momentum building. As the business has delivered an improved performance, and with strong cash generation contributing to significant headroom, our capital allocation policy also supports a new £500 million buyback, whilst maintaining capacity for high return acquisitions.”

* Alternative performance measure (see Note 2)

≠ After excluding an £8 million share-based payment credit due to the reversal of prior year charges related to awards made in 2023 and 2024 that were impacted by the Group’s performance in 2025

Operational and strategic progress:

• Continued operational improvement in North America Distribution, with service levels and product availability restored, the business’ responsiveness and agility boosted, and teams engaged and motivated to deliver. The work we have been doing in our Distribution business is delivering, with strong underlying revenue growth in the first half, driven by volume growth and margin expansion.
• 15 warehouse consolidations and relocations, alongside continued investments into digital solutions and automation; significant warehouse consolidation project in France now fully operational, with improvements already being delivered in service levels, working capital, warehouse capacity and health & safety
• Two bolt-on acquisitions year-to-date; Scientifix bolsters our healthcare business in Australia, while Ghessu Bath, announced today, complements our hospitality business in Spain
• Processed 78% of orders digitally, compared to 76% over 2025, supporting customer stickiness and increasing ease of customer ordering
• Own brand, c.30% of Group revenue, stable compared to 2025, and continues to complement the depth of our third-party supplier relationships

Business area highlights:

• North America: Strong underlying revenue growth, which accelerated in the second quarter, with positive contributions from both volume and inflation. Growth was driven by our Distribution business, including good growth in grocery and foodservice, as well as our safety businesses. Operating margin was stable, with the benefits of higher inflation offset by business mix and higher variable costs. Within the business area, margin increases in our Distribution and safety businesses were offset by margin declines in our retail, Mexico and convenience store businesses which continue to be impacted by challenging markets
• Continental Europe: Modest underlying revenue growth, with an acceleration in the second quarter driven by broad-based volume improvement and higher inflation. Strong growth in Spain, driven by packaging and safety businesses, and continued improved performance across our online businesses. France volume growth offset by deflation, although deflation moderated through the period. Moderate increase in operating margin driven by inflation in Turkey and Spain
• UK & Ireland: Slight underlying revenue growth, driven mostly by volume, with inflation only supportive towards the end of the period. Growth was driven by our foodservice and cleaning & hygiene businesses and partially offset by a modest revenue decline in safety. Strong operating margin expansion was driven by the annualisation of initial Nisbets synergies
• Rest of the World: Good constant currency revenue growth, driven by acquisitions. Modest underlying revenue growth, driven by Asia Pacific over the period, although performance in Latin America improved in the second quarter, supported by volume growth and moderating deflation in Brazil. Strong profit improvement driven by Latin America, partially offset by lower healthcare margins in Asia Pacific, which has been impacted by reduced public sector spending in New Zealand and the timing of project revenue

Outlook

Guidance for 2026 upgraded:

• The Group continues to expect revenue growth^ at constant exchange rates to be driven by modest underlying revenue growth*, supported by some inflation, alongside a small benefit from acquisitions
• Group operating margin* for the year is expected to be broadly flat year-on-year compared to the 7.6% operating margin reported in 2025≠
• Expect modest adjusted operating profit growth year-on-year≠, at constant exchange rates
• Other guidance items: net adjusted finance expense* of £125-£130 million; full year effective tax rate will be around 26.0%

* Alternative performance measure (see Note 2)

≠ After excluding an £8 million share-based payment credit due to the reversal of prior year charges related to awards made in 2023 and 2024 that were impacted by the Group’s performance in 2025

^ Excludes US IEEPA tariff refund

Note: A live webcast of today’s presentation to analysts will be available on www.bunzl.com, commencing at 9.30 am.

HALF YEARLY FINANCIAL REPORT FOR SIX MONTHS ENDED 30 JUNE 2026