Bunzl (LON:BNZL) Issues Earnings Results

Bunzl (LON:BNZL) posted its quarterly earnings results on Tuesday. The company reported GBX 65.70 EPS for the quarter, Digital Look Earnings reports. Bunzl had a net margin of 4.82% and a return on equity of 20.61%.

Here are the key takeaways from Bunzl’s conference call:

• Underlying revenue growth accelerated to 3.2%, with volume growth across all business areas and particularly strong momentum in North American distribution.
• Bunzl upgraded its 2026 outlook to modest adjusted operating profit growth and expects full-year operating margins to be broadly flat year over year.
• Strong cash generation and 1.8x leverage support a newly announced £500 million share buyback, while the company retains capacity for increased bolt-on acquisition spending.
• North American distribution delivered 8% underlying revenue growth as service levels, local decision-making, employee retention, and customer relationships improved, creating a platform for further market-share gains.
• Second-half margins are expected to decline year over year as temporary inflation-related inventory benefits unwind, selling prices normalize, Nisbets synergies annualize, and variable operating costs remain elevated.

Bunzl Stock Performance

LON BNZL traded down GBX 14 during mid-day trading on Friday, reaching GBX 2,658. 1,050,332 shares of the stock were exchanged, compared to its average volume of 8,634,456. The company has a market capitalization of £8.53 billion, a P/E ratio of 18.86, a P/E/G ratio of 5.40 and a beta of 0.32. The company has a debt-to-equity ratio of 95.61, a quick ratio of 0.73 and a current ratio of 1.38. The business’s 50 day moving average is GBX 2,744 and its 200-day moving average is GBX 2,479.70. Bunzl has a 1 year low of GBX 1,981 and a 1 year high of GBX 2,898.

Analyst Upgrades and Downgrades

Several research firms recently commented on BNZL. Royal Bank Of Canada reiterated a “sector perform” rating and set a GBX 2,600 price objective on shares of Bunzl in a research note on Tuesday. JPMorgan Chase & Co. lifted their price target on shares of Bunzl from GBX 2,610 to GBX 2,800 and gave the stock an “overweight” rating in a report on Wednesday. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a GBX 3,000 price target on shares of Bunzl in a research report on Wednesday. Citigroup increased their price objective on Bunzl from £280 to £300 and gave the company a “buy” rating in a report on Thursday, June 25th. Finally, Jefferies Financial Group reissued an “underperform” rating and issued a GBX 1,900 price objective on shares of Bunzl in a research report on Tuesday. Two equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Bunzl has an average rating of “Hold” and a consensus target price of GBX 6,407.14.

About Bunzl

Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, cleaning and hygiene supplies, and personal protection equipment to grocery stores, supermarkets, and convenience stores. It also provides food packaging, disposable tableware, guest amenities, catering equipment, agricultural supplies, cleaning and hygiene products, and safety items to hotels, restaurants, contract caterers, food processors, commercial growers, and the leisure sector; and gloves, boots, hard hats, ear and eye protection, and other workwear, as well as cleaning and hygiene supplies, and asset protection products to industrial and construction, and ecommerce sectors.