Bunzl, the FTSE 100 international distribution and services group, has reiterated its full-year outlook after delivering what it described as a good underlying performance in the third quarter.
The group expects modest underlying revenue growth for 2026, supported by some inflation and a small contribution from acquisitions.
Operating margin for the full year is expected to come in broadly flat year on year, compared with the 7.6% reported in 2025.
Net adjusted finance expense is forecast at £125 million to £130 million, with an effective tax rate of around 26%.
Group revenue grew 3.1% in the quarter at constant exchange rates, with underlying revenue up 3.7%, supported by both inflation and volume growth.
North America Distribution was identified as the standout performer, driving the volume gains.
Acquisitions contributed 0.4% to revenue growth, while fewer trading days in the period shaved 1.1% off the headline figure.
Operating margin was in line with expectations.
Bunzl completed the acquisition of Blueleaf Care in October, adding a leading UK distributor of products supplied to care homes and the broader health and social care sector.
Blueleaf generated revenue of £58 million in 2025 and is described as highly complementary to Bunzl's existing operations.
The group is also making progress on its £500 million share buyback programme, announced at the half-year stage, with approximately £225 million completed to date.
Bunzl said it continues to prioritise value-accretive bolt-on acquisitions and retains sufficient balance sheet headroom to pursue further opportunities.
Chief executive Frank van Zanten said the quarter demonstrated the resilience of the business, with continued volume growth and effective management of inflation in volatile markets.
Van Zanten said Bunzl expects 2026 to be a foundation for future profit growth, pointing to the group's scale advantage, strong cash generation and entrepreneurial culture as the drivers of consistent compounding growth over the medium term.
