Bunzl plc Final Results

ANNUAL RESULTS ANNOUNCEMENT

Record acquisition spend, three year capital allocation commitment and 2025 guidance unchanged

Bunzl plc, the specialist international distribution and services Group, today publishes its annual results for the year ended 31 December 2024.

Financial results	2024	2023	Growth as reported	Growth at constant exchange*
Revenue	£11,776.4m	£11,797.1m	(0.2)%	3.1%
Adjusted operating profit*	£976.1m	£944.2m	3.4%	7.2%
Adjusted profit before income tax*	£872.9m	£853.7m	2.2%	6.2%
Adjusted earnings per share*†	194.3p	191.1p	1.7%	5.5%
Dividend for the year∆	73.9p	68.3p	8.2%

Statutory Results	2024	2023	Growth as reported
Operating profit	£799.3m	£789.1m	1.3%
Profit before income tax	£673.6m	£698.6m	(3.6)%
Basic earnings per share†	149.6p	157.1p	(4.8)%

Highlights include:

• Revenue increased by 3.1% at constant exchange rates*; with underlying trends improving in the second half driven by slight volume growth and a small easing of deflation.
• Adjusted operating profit* increased by 7.2% at constant exchange rates*, reported operating profit increased by 1.3%.
• Further expansion of operating margin* from 8.0% to 8.3%.
• Adjusted earnings per share* increased by 5.5% at constant exchange rates*, reported basic earnings per share declined by 4.8%, largely due to the currency translation driven loss related to the disposal of our business in Argentina.
• Continued strong free cash flow* driven by highly cash generative model; cash conversion of 93%.
• 32nd year of consecutive annual dividend growth; total dividend per share increase of 8.2%. Dividend cover expected to normalise further in 2025.
• 13 acquisitions announced in 2024 with record annual committed spend of £883 million; pipeline active; continued optimisation of our portfolio with the disposal of two small businesses in 2024 and an additional disposal announced today.
• 2025 outlook: maintaining guidance for robust Group revenue growth≠ and operating margin* in-line with 2024.
• Announced commitment to allocate c.£700 million per annum primarily towards value-accretive acquisitions and, if required, returns of capital, in each of the three years ending 31 December 2027.
• Completion of initial £250 million share buyback in 2024; further £200 million share buyback for 2025 underway.

Commenting on today’s results, Frank van Zanten, Chief Executive Officer of Bunzl, said:

“2024 has been a year of significant strategic progress for Bunzl in which our dedicated and entrepreneurial teams delivered strong adjusted operating profit growth, supported by further expansion in our operating margin. 2024 was a record year for acquisitions with committed spend of £883 million, in addition to the completion of an initial £250 million share buyback which reflects the strength of Bunzl’s financial position. We have substantial headroom for continuing to self-fund value-accretive acquisitions alongside additional returns of capital to shareholders, and our acquisition pipeline remains active.

Bunzl has delivered significant shareholder value over an extended period, with 9% compound annual growth of adjusted earnings per share since 2004. In 2024 we extended our track record of annual dividend growth to 32 consecutive years, reflecting our resilient business model. Our strategy remains consistent, and I am very confident that Bunzl will continue to create resilient, sustainable, long-term value for all stakeholders.“

Strategic progress:

• Further expansion of operating margin, supported by the impact of higher margin acquisitions and good margin management; own brand revenue penetration of c.28% compared to c.25% in 2023.
• 13 acquisitions announced during 2024, across multiple sectors and geographies, including our first entry into Finland; record annual committed spend of £883 million.
• Driving operating efficiencies with 19 warehouse consolidations and relocations, along with accelerating investments into digital solutions and automation.
• Processed 75%≠ of orders digitally compared to 72% in 2023, further enhancing customer stickiness and increasing low touch customer ordering.
• 71% Trust Index score, a measurement achieved as part of the Great Place to Work survey; a strong and pleasing result, given employee satisfaction supports our continual focus on delivering a high level of customer service.

• Despite significant uncertainties relating to the wider economic and geopolitical landscape, the Group expects robust revenue growth in 2025, at constant exchange rates, driven by announced acquisitions and slight underlying revenue growth.
• Group operating margin* is expected to be maintained in-line with 2024 and to remain substantially higher compared to pre-pandemic levels, driven by higher margin acquisitions, as well as a good underlying margin increase.
• Other aspects of our full year 2025 guidance, are: (1) the full year effective tax rate is expected to be around 26.0%; (2) the Group expects net finance expenses to be around £115 million.