London-based foodservice, grocery, safety and JanSan products distributor Bunzl is bullish on its business growth for the second half of 2024 despite modest broad declines in the first six months.

Bunzl — which saw about 54% of its operating profit come from North America business — shared preliminary first half performance figures on June 27, which included an upgraded full-year guidance.

The company said that group revenue for the first half of 2024 is expected to decrease by 3-4% year-over-year (0-1% constant exchange), with adjusted organic revenue down by about 5%. Bunzl said those declines are primarily driven by volume reductions and deflation in the company’s U.S. business. Group operating margin for 1H 2024 is expected to show a strong improvement compared to a year earlier, resulting in “robust” adjusted operating profit growth at constant exchange rates.

Bunzl detailed that its North American 1H revenue decline was driven by volume reductions in its U.S. foodservice redistribution business; the company’s transition toward an “increased own brand proposition”; ongoing impacts from transitioning customer-specific inventory in its U.S. retail business; and deflation. Bunzl said second quarter North America revenue trends are expected to improve compared to the first quarter, with volumes starting to recover.

Bunzl expects good 1H margin growth in North America and stronger margin growth in the United Kingdom and Ireland and rest of world, largely driven by benefits from acquisitions and ongoing margin management.

Bunzl will report its finalized 2024 1H financials on Aug. 27.

“Our agile and entrepreneurial teams continue to deliver robust profit growth,” Bunzel CEO Frank van Zanten said in a news release. “I am delighted with the ongoing successful margin management, including increasing penetration of own brands, demonstrated across the group, allowing us to upgrade our full year profit outlook today.”

In June, Bunzl completed the acquisition of Clean Spot — a distributor of cleaning and hygiene products and equipment in Canada that had 2023 revenues of about $5.1 million.