Bunzl (LON:BNZL) Releases Quarterly Earnings Results

Bunzl (LON:BNZL) released its earnings results on Tuesday. The company reported GBX 65.70 earnings per share (EPS) 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 Stock Performance

Shares of Bunzl stock opened at GBX 2,732 on Tuesday. The company has a market cap of £8.77 billion, a PE ratio of 19.39, a price-to-earnings-growth ratio of 5.40 and a beta of 0.32. Bunzl has a 52 week low of GBX 1,981 and a 52 week high of GBX 2,898. The business has a 50 day moving average price of GBX 2,739.36 and a 200-day moving average price of GBX 2,466.64. The company has a quick ratio of 0.73, a current ratio of 1.39 and a debt-to-equity ratio of 103.81.

Analyst Upgrades and Downgrades

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

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.