Bunzl (LON:BNZL – Get Free Report) 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 3.0%
Shares of BNZL stock traded down GBX 84 during trading hours on Tuesday, hitting GBX 2,708. The company had a trading volume of 21,447,822 shares, compared to its average volume of 8,882,458. The stock has a market capitalization of £8.70 billion, a PE ratio of 19.22, a price-to-earnings-growth ratio of 5.40 and a beta of 0.32. The company’s fifty day moving average is GBX 2,739.36 and its 200 day moving average is GBX 2,466.64. 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 debt-to-equity ratio of 103.81, a current ratio of 1.39 and a quick ratio of 0.73.
More Bunzl News
- Positive Sentiment: Higher outlook and improved margins: Bunzl said it expects modest profit growth in 2026 and upgraded its margin outlook, suggesting cost-control measures and operational improvements are beginning to support profitability. UK’s Bunzl forecasts modest profit growth, improves margin outlook
- Positive Sentiment: £500 million share buyback: Bunzl launched a buyback of up to £500 million over the next 12 months. Repurchases can enhance earnings per share and signal management’s confidence in the company’s cash generation, while balancing shareholder returns with acquisition and growth spending. Bunzl raises 2026 outlook and announces £500 million share buyback Bunzl launches £500m share buyback
- Neutral Sentiment: Routine share and earnings disclosures: Bunzl reported quarterly earnings per share of 65.70 pence. The company also issued 11,846 shares for employee schemes and confirmed its issued share capital and voting-rights structure; these changes are small and are unlikely to materially affect valuation. Bunzl issues new shares for employee schemes
- Negative Sentiment: Jefferies remains cautious: Jefferies reaffirmed its “underperform” rating and set a 1,900 pence price target, well below the recent trading level. The target highlights concerns that the stock’s valuation may already reflect much of the improved outlook. Bunzl company announcements
Analyst Upgrades and Downgrades
BNZL has been the topic of a number of analyst reports. Deutsche Bank Aktiengesellschaft cut Bunzl to a “hold” rating and lifted their price target for the stock from GBX 2,950 to GBX 3,000 in a research note on Wednesday, August 12th. Royal Bank Of Canada upped their price objective on shares of Bunzl from GBX 2,200 to GBX 2,600 and gave the stock a “sector perform” rating in a research note on Tuesday, July 7th. JPMorgan Chase & Co. raised their target price 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. Jefferies Financial Group reaffirmed an “underperform” rating and issued a GBX 1,900 price target on shares of Bunzl in a research report on Tuesday. Finally, Citigroup lifted their price objective on shares of Bunzl from £280 to £300 and gave the company a “buy” rating in a report on Thursday, June 25th. Two 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’s stock. Based on data from MarketBeat, Bunzl presently has an average rating of “Hold” and a consensus target price of GBX 6,380.
Check Out Our Latest Stock Report on BNZL
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.
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