Bunzl (LON:BNZL) shares climbed more than 5% on Thursday after the group resumed its £200 million buyback programme and stuck with its annual guidance, even as first-half profit fell.
Pretax profit dropped 11% to £250.1 million in the six months to June, while adjusted operating profit also slid 11% to £404.5 million. Earnings per share fell 14% to 77.8p, with operating margin narrowing to 7% from 8%. Revenue edged up 0.8% to £5.76 billion, or 4.2% at constant currency.
Performance was dented by execution problems in North America and weak trading in France, where deflation and cost inflation hit margins. Bunzl said it expects a stronger second half, with margins still lower but improving against the first six months.
The board lifted the interim dividend slightly to 20.2p and confirmed two bolt-on acquisitions, Quindesur in Spain and Guantes Internacionales in Mexico. Around £86 million remains on the buyback plan, which had been paused in April after a profit warning.
At the time of writing, Bunzl shares were up 5.3% at 2,510p, though still down 24% so far in 2025.