Bunzl (BNZL) H2 2024 earnings summary

Executive summary

• Achieved record acquisition spend of £883 million in 2024, with 13 acquisitions across multiple sectors and geographies, including first entry into Finland and the significant Nisbets acquisition.

• Revenue grew 3.1% at constant exchange rates to £11,776.4m, with underlying trends improving in the second half due to slight volume growth and easing deflation.

• Adjusted operating profit rose 7.2% at constant exchange rates to £976.1m, with operating margin expanding from 8.0% to 8.3%.

• Continued focus on operational efficiency, digitalization, and sustainable own brand growth, supporting resilience and long-term value creation.

• 32nd consecutive year of annual dividend growth, with total dividend per share up 8.2% to 73.9p.

Financial highlights

• Revenue: £11,776.4m (up 3.1% at constant exchange rates); adjusted operating profit: £976.1m (up 7.2% at constant exchange rates); adjusted EPS: 194.3p (up 5.5% at constant exchange rates).

• Free cash flow of £634 million, with 93% cash conversion.

• Adjusted net debt to EBITDA: 1.8x at year-end, up from 1.2x in 2023.

• Return on invested capital: 14.8%.

• Dividend cover: 2.6x, with further normalization expected.

Outlook and guidance

• 2025 outlook reiterates robust revenue growth driven by acquisitions and slight underlying growth, with group operating margin expected to remain in line with 2024.

• Net deflation expected to remain a headwind into 2025; tax rate guidance at ~26%, net finance expense at ~£115 million.

• Continued focus on cost efficiencies, especially in Europe and UK, to offset wage and property cost inflation.