Shares in Bunzl increased by over 6% earlier today despite the firm recording a 15.4% drop in its profit before tax, which totalled £345.6m in the six months to 30 June.

The distribution group also recorded an 11.2% fall in its operating profit, which totalled £404.5m in this period, while its earnings per share dropped by 14.3% to 77.8 pence.

However, Bunzl's revenue increased by 0.8% to £5.75bn, which it said remained "broadly stable" in a "challenging operating environment".

Bunzl stated that it had made good progress with actions to improve its operational performance in North America and continental Europe.

The H1 results come after the firm cut its profit guidance for the full financial year in April, leading to its share price hitting a four-year low.

Chief executive officer at Bunzl, Frank van Zanten, said: "We remain strongly focused on improving performance across the business. Actions taken in our largest business in North America have re-energised the team and we are seeing early positive indicators of success, with the profit momentum seen through the first half in-line with our expectations.

“While the benefits of some actions are not expected to drive improvements until well into 2026, we are focused on creating a stronger platform for its long-term profitable growth. In Continental Europe, the operating environment remains challenging, and our French business has been particularly impacted by ongoing deflation and a weak market, but we have seen improved performance in Benelux.”

Looking ahead, Bunzl reiterated its guidance for the full year, while expecting "moderate revenue growth", driven by acquisitions of companies in Span and Mexico and broadly flat underlying revenue.

It also expects its operating margin to be moderately below 8%, compared to 8.3% in 2024.

However, the firm has resumed its share buyback, with the intention of completing the remaining £86m of the targeted £200m scheme.

Investment director at AJ Bell, Russ Mould, said that a number of factors have led to this increase in its share price.

He concluded: "Bunzl is supposed to be boring and reliable, providing businesses with everyday items which are fundamental to their day-to-day operations, but it created the wrong sort of excitement in April as it endured its worst one-day sell-off in a decade.

"Investors have now reacted with relief to a first-half results announcement which is reassuringly prosaic.

"Profits were lower as guided and the company has also resumed its buyback, suggesting the ship has been steadied thanks to divisional leadership changes, cost savings and an increased focus on higher margin own-brand products."

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