Bunzl backs guidance as sales growth stalls amid 'challenging' year

Bunzl PLC on Monday said it expects profit to stabilise in 2026 after a tough year in 2025 that saw profit decline as operating margins narrowed.

The London-based distribution and services company said pretax profit decreased 7.9% to £620.5 million in 2025 from £673.6 million in 2024. Basic earnings per share declined 5.4% to 141.5 pence from 149.6p.

Revenue increased 0.6%, or 3.0% at constant exchange rates, to £11.85 billion from £11.78 billion in 2024, driven by acquisitions.

Adjusted operating profit fell 6.7%, or 4.3% at constant exchange rates, to £910.3 million from £976.1 million with the operating margin narrowing by 0.6 percentage point to 7.7% from 8.3%.

Bunzl said the annual decline in operating margin moderated in the second half of 2025 compared to the first half, reflecting an improved operating performance in its largest business in North America, operating margin stabilisation in Continental Europe, and margin expansion in the UK & Ireland.

‘I am pleased with how the group has responded to what has proven to be a challenging year for Bunzl,’ said Chief Executive Officer Frank van Zanten.

‘Our 2026 guidance for a more stable profit outlook remains unchanged and provides a foundation from which to deliver long-term profitable growth.’

For 2026, Bunzl reiterated guidance for ‘moderate revenue growth at constant exchange rates’ and an ‘operating margin slightly down year-on-year’.

‘The fundamentals of Bunzl’s business model are robust and I am confident in our ability to generate resilient, compounding growth over the medium-term,’ CEO van Zanten said.

The total dividend for 2025 will be increased 0.3% to 74.1p per share from 73.9p. This includes a 53.9p final dividend, up from 53.8p a year before.

Shares in Bunzl were up 0.7% to 2,210.00p in London on Monday morning. The wider FTSE 100 index was down 0.8%.

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