Bunzl’s revenue increased 4% at constant exchange rates, with flat underlying revenue in the first half of 2025. The company reaffirmed its full-year outlook for moderate revenue growth and margin stabilization, driven by a stronger second half. Management also announced a GBP 200 million share buyback.

Investors closely monitored Bunzl’s North American results and management’s optimism following a previous earnings reduction. The company experienced positive revenue momentum in the second quarter and is seeing promising early indicators in North America. Acquisitions have contributed to revenue growth, with GBP 120 million invested in five companies by August.

Morningstar maintains a narrow moat and GBX 3,280 fair value estimates for Bunzl after incorporating new guidance. The company’s shares are viewed as undervalued after a price increase. Despite short-term execution issues in the distribution business, Bunzl’s cost advantage remains strong and is expected to yield long-term benefits.

Bunzl’s struggles in North America stemmed from management changes and strategy shifts that reduced agility and led to slower response times, affecting client acquisitions. The company has since adjusted its approach, balancing centralized operations with local team expertise. Management anticipates resolving these issues by next year.

Read more at Morningstar: Reiteration of Guidance and Share Buybacks Drive Share Price Rise