Bunzl: FTSE 100 giant looks to further deals in 2025 after profit jumps
FTSE 100 international distribution and services company Bunzl has reported a slight decline in revenue on a reported basis for 2024.
Revenue stood at £11.78bn ($14.91bn), a 0.2 per cent decrease on a reported basis but up 3.1 per cent at constant exchange rates.
Adjusted operating profit increased by 7.2 per cent at constant exchange rates to £976.1m ($1.23bn), while statutory operating profit rose 1.3 per cent to £799.3m ($1.01bn).
Adjusted profit before income tax rose 6.2 per cent at constant exchange rates to £872.9m ($1.10bn).
However, statutory profit before income tax fell by 3.6 per cent to £673.6m ($852.7m), primarily due to a currency translation loss from Bunzl’s disposal of its Argentina business.
Based on these figures, the company increased its annual dividend by 8.2 per cent to 73.9p per share—the 32nd consecutive year of dividend growth.
Bunzl announced 13 acquisitions in 2024, with a record annual committed spend of £883m ($1.12bn).
These acquisitions spanned multiple sectors and regions, including the company’s first entry into Finland.
The firm also disposed of two small businesses during the year, and another divestment was announced alongside its results.
The company said it would allocate approximately £700m annually for acquisitions and potential capital returns over the next three years.
Frank van Zanten, CEO of Bunzl, said: “2024 was 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 £883m, in addition to the completion of an initial £250m share buyback which reflected the strength of Bunzl’s financial position.
“We had substantial headroom for continuing to self-fund value-accretive acquisitions alongside additional returns of capital to shareholders, and our acquisition pipeline remained active.
“Bunzl delivered significant shareholder value over an extended period, with nine per cent 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 remained consistent, and I was very confident that Bunzl would continue to create resilient, sustainable, long-term value for all stakeholders.”