UK's Bunzl lifts 2026 sales outlook as North America turnaround gains steam

June 23 (Reuters) - British business supplies distributor Bunzl on Tuesday upgraded its annual revenue growth outlook after a strong first half, supported by robust demand in its biggest market, North America, and some price hikes.

The positive update comes as Bunzl works on turning around its North American business amid reports of activist investor Elliott building a stake and pushing for a strategic review, while higher fuel and freight costs due to the Iran war have also weighed on its margins.

Bunzl, which supplies packaging, cleaning and safety products to customers, now expects 2026 "revenue growth at constant exchange rates to be driven by modest underlying growth, supported by some inflation and a small contribution from acquisitions."

The company previously forecast "moderate revenue growth at constant exchange rates, driven by some underlying revenue growth and a small benefit from acquisitions."

For the six months ending June 30, revenue is projected to grow by around 4% at constant exchange rates, with underlying revenue growth of around 3%.

(Reporting by Neeshita Beura in Bengaluru; Editing by Subhranshu Sahu)