Bunzl (LON:BNZL) Releases Earnings Results

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

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 Down 1.8%

LON BNZL traded down GBX 50 during trading on Tuesday, hitting GBX 2,742. The company’s stock had a trading volume of 1,540,872 shares, compared to its average volume of 8,763,964. Bunzl has a fifty-two week low of GBX 1,981 and a fifty-two week high of GBX 2,898. The company has a market cap of £8.80 billion, a PE ratio of 19.46, a P/E/G ratio of 5.40 and a beta of 0.32. The company has a debt-to-equity ratio of 103.81, a current ratio of 1.39 and a quick ratio of 0.73. The business’s 50 day simple moving average is GBX 2,739.36 and its 200-day simple moving average is GBX 2,466.64.

Analysts Set New Price Targets

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

Key Bunzl News

Here are the key news stories impacting Bunzl this week:

• Positive Sentiment: Higher 2026 outlook and buyback: Bunzl raised its 2026 outlook, forecasting modest profit growth and an improved margin trajectory. It also launched a share repurchase programme of up to £500 million over the next 12 months, which could support earnings per share and shareholder returns. Bunzl raises 2026 outlook and announces £500 million share buyback
• Positive Sentiment: North American recovery: Investors Chronicle reported that improving performance in North America is helping Bunzl’s turnaround, potentially providing a source of future growth and margin improvement. Bunzl gets a lift from North American turnaround
• Positive Sentiment: Solid reported profitability: Bunzl reported quarterly earnings per share of 65.70 pence, alongside a 17.21% return on equity and a 5.12% net margin.
• Neutral Sentiment: Capital structure updates: The company issued 11,846 new ordinary shares for employee schemes and reported 324,312,7xx issued shares as of 31 August. The employee issuance is small but modestly dilutive. Bunzl Issues New Shares for Employee Schemes Under Existing Admissions
• Negative Sentiment: Broker caution: Jefferies reaffirmed its “underperform” rating and set a GBX 1,900 price target, substantially below Bunzl’s recent trading level. That valuation warning may be offsetting the upbeat guidance and buyback news.

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.