Bunzl hikes dividend and snaps up Nisbets for £339m
Acquisitive outsourcer Bunzl has hiked its dividend and brought two more firms into the fold, bringing its total acquisition spend to £5bn in the last two decades.
In its full year results, the FTSE 100 firm said it planned to offer shareholders a 68.3p dividend, an 8.9 per cent increase on 2023.
It came as adjusted operating profit rose over 6 per cent to £944.2m, alongside broadly level revenues of £11.8bn.
Bunzl operates in more than 30 countries worldwide, selling goods to construction firms, grocery chains, hotels, and hospitals.
Frank van Zanten, Chief Executive Officer of Bunzl, said: “I am proud of the Group’s performance during 2023; the efforts of Bunzl colleagues around the world have resulted in a strong profit performance for the Group, underpinned by a record operating margin of 8 per cent.
“Over the year we saw overall good outcomes on tendering activity reflecting the strength of our value-added proposition, including our sustainability expertise and digital capabilities.”
Van Zanten said the group had “substantial capacity to self-fund further acquisitions,” while the pipeline “remains active.”
Looking ahead, Bunzl maintained its profit guidance for 2024.
“Following a slower than expected start to the year in North America, we now expect to deliver slight revenue growth in 2024, at constant exchange rates, driven by acquisitions announced in 2023; with underlying revenue, which is organic revenue adjusted for trading days, declining slightly. Group operating margin is now expected to be slightly below 2023.”