Bunzl (LON:BNZL) Posts Earnings Results

Bunzl (LON:BNZL) issued its earnings results on Tuesday. The company reported GBX 65.70 earnings per share for the quarter, Digital Look Earnings reports. Bunzl had a net margin of 5.12% and a return on equity of 17.21%.

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 Trading Down 1.7%

LON BNZL opened at GBX 2,744 on Tuesday. The company has a current ratio of 1.39, a quick ratio of 0.73 and a debt-to-equity ratio of 103.81. Bunzl has a 1-year low of GBX 1,981 and a 1-year high of GBX 2,898. The firm’s fifty day simple moving average is GBX 2,739.36 and its 200-day simple moving average is GBX 2,466.64. The company has a market capitalization of £8.81 billion, a PE ratio of 19.47, a price-to-earnings-growth ratio of 5.40 and a beta of 0.32.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on BNZL. Citigroup lifted their target price on Bunzl from £280 to £300 and gave the stock a “buy” rating in a report on Thursday, June 25th. Jefferies Financial Group reissued an “underperform” rating and issued a GBX 1,900 price target on shares of Bunzl in a research note on Tuesday. Deutsche Bank Aktiengesellschaft downgraded Bunzl to a “hold” rating and boosted their price objective for the stock from GBX 2,950 to GBX 3,000 in a report on Wednesday, August 12th. Royal Bank Of Canada lifted their target price on shares of Bunzl from GBX 2,200 to GBX 2,600 and gave the stock a “sector perform” rating in a research report on Tuesday, July 7th. Finally, JPMorgan Chase & Co. upped their price target on shares of Bunzl from GBX 2,580 to GBX 2,610 and gave the company an “overweight” rating in a research report on Wednesday, June 24th. Two equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Bunzl presently has a consensus rating of “Hold” and a consensus price target of GBX 6,380.

Bunzl Company Profile

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.