Bunzl awaits third-quarter update after 4.3% underlying revenue growth
Key Facts
Bunzl scheduled its third-quarter trading update for today, according to its financial calendar, after underlying revenue growth accelerated and its operating margin improved in the first half of 2026. The group's results presentation showed underlying revenue growth reached 4.3% in the second quarter. The measure stood at 2.0% in the first quarter, reflecting faster growth between the two periods on the same comparative basis. The first-half operating margin rose to 7.3%, according to the results presentation. The margin was about 7.0% in the first half of 2025, leaving the group heading into the trading update with improvements in both underlying growth and operating profitability.
Ahead of the update, Bunzl announced on 8 October 2026 that it had acquired Blueleaf Care in the United Kingdom. The group said in its deal statement that it had bought a 100% stake in the British company. Blueleaf generated revenue of £58 million in 2025, according to the same statement. The company's distribution range includes consumables, cleaning solutions and continence care supplies, alongside equipment, furniture and personal protective equipment. Blueleaf says it supports more than 5,000 care homes across the United Kingdom after nearly 40 years in business, adding an operation serving a network of British care institutions to Bunzl.
Bunzl Chief Executive Frank van Zanten said in the acquisition statement that "combining the businesses will broaden our offering to customers". The deal is part of an approach the group describes as prioritising attractive bolt-on acquisitions, according to its first-half results report. It followed Bunzl's acquisition of Australia's Scientifix Group in April, according to the company's June statement. The Australian group distributes products and services to the life sciences and biotechnology sectors. Bunzl explains in its acquisition strategy presentation that its decentralised model allows subsidiaries to retain commercial independence and local flexibility, while the group's scale delivers procurement savings.
Alongside its expansion through acquisitions, Bunzl announced a new £500 million share buyback programme with its first-half results. The programme is targeted for completion within the 12 months following its announcement, according to the company's report. Adjusted net debt to earnings before interest, taxes, depreciation and amortisation stood at about 1.8 times at the end of the first half of 2026. That compares with the group's stated target range of 2.0 to 2.5 times, according to the period's results presentation. The buyback announcement thus came with leverage below the target range, as the company reaffirmed the priority of bolt-on deals in its expansion strategy.
On revenue, first-half growth at constant exchange rates was 4.1% excluding refunds of U.S. tariffs imposed under the International Emergency Economic Powers Act. These refunds reduced reported revenue, according to Bunzl's results statement. They did not, however, affect the group's adjusted operating profit during the same period. In comments accompanying the results, van Zanten said "the macroeconomic backdrop remains uncertain, with challenging end-market conditions and input price volatility". Bunzl shares rose 2.26% in the trading session when the Blueleaf deal was announced, according to historical trading data from Investing.
Van Zanten's comments in the June statement included a reference to improved performance at the North American distribution business. He said "the business's responsiveness, agility and high service levels have largely been restored". Blueleaf, meanwhile, said in its acquisition announcement that it would continue operating under its own brand. This means the British brand will remain within the group after its ownership transferred entirely to Bunzl. The company's financial calendar set 20 October 2026 as the date for its third-quarter trading update.