Bunzl Adjusted Operating Profit Falls 4.3% Amid North America Issues

The Tip Desk · March 17, 2026 · 2 min read

The specialist international distribution and services Group reported a 4.3% decline in adjusted operating profit at constant exchange rates for 2025

Bunzl reported a challenging 2025 fiscal year characterized by execution issues in its largest business, Bunzl North America Distribution, and a weak end market backdrop. The company, a specialist international distribution and services Group, saw adjusted operating profit fall 4.3% at constant exchange rates to £910.3 million.

Performance was heavily impacted by a new organizational model in North America, which the company said created execution issues. These challenges were amplified by macroeconomic uncertainty, supply chain disruptions related to tariffs, and pressure on the foodservice and convenience store sectors. In Continental Europe, the company noted a challenging environment where profit declines in France and other businesses offset gains in Benelux.

Despite these headwinds, the company reported a recovery in the second half of the year. Underlying revenue growth improved to 0.9% in the second half, compared to a 0.2% decline in the first half. The operating margin also showed signs of stabilization, declining from 8.6% to 8.3% in the second half, a more moderate drop than the first half's decline from 8.0% to 7.0%. This improvement was supported by margin growth in the UK and Ireland, aided by Nisbets synergies, and a moderation of the margin decline in North America Distribution.

Revenue for the year rose 0.6% at actual exchange rates to £11,845.4 million, while underlying revenue increased 0.4% compared to 2024. The company's operating margin for the full year decreased to 7.7% from 8.3%.

Bunzl continued its acquisition strategy, completing eight acquisitions with a total committed spend of £131.8 million. These additions contributed an estimated £92 million in annualized revenue and £16 million in adjusted operating profit. The company also disposed of its US R3 Safety business in January 2025.

Looking to 2026, the company expects a more stable adjusted operating profit outlook and a continuation of underlying revenue growth, supported by a focus on incremental operating cost opportunities and revenue growth. The company noted that some benefits from actions taken in North America are not expected to drive improvements until well into 2026.