Food packaging, cleaning supplies and safety products distributor Bunzl reported its 2025 half year report on Aug. 26, which showed an increase in total sales while North America sales declined.

The London-based company reported total sales of $7.7 billion (USD), up 4.2% year-over-year at a constant exchange rate. Meanwhile, organic revenue was broadly stable over the 6-month period ended June 30.

Adjusted operating profit of $545.9 million declined 7.6% year-over-year. Meanwhile, operating margin declined 100 basis points to 7.0%.

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Bunzl announced five acquisitions year-to-date, including Quindesur and Guantes Internacionales, which was revealed Aug. 26.

“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,” Bunzl CEO Frank van Zanten said in the company’s financial release.

North American Unit

For its North American Unit (53% of company revenue), Bunzl reported total sales of $4.1 billion (USD), down 2.3% year-over-year. Meanwhile, organic growth likewise declined 1.2% year-over-year.

Operating profit of $265.9 declined 14.7% year-over-year, while margin of 6.4% likewise decreased by 100 bps.

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Bunzl said the decline in adjusted operating profit was driven by execution challenges in the company’s largest business that primarily services foodservice and grocery customers in a challenging macro-economic environment. However, excluding its largest business, North America adjusted operating profit was more stable but still impacted by the uncertain environment.

Zanten added: “Actions taken in our largest business in North America have re-energized 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. This is a market-leading business, and 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.”

2025 Outlook

Bunzel expects moderate revenue growth in 2025, at constant exchange rate, driven by announced acquisitions and broadly flat revenue.

The company said operating margin is expected to be moderately below 8.0%, down 30 bps year-over-year.