Bunzl PLC end results March 3, 2025

Annual provisions

Record acquisition expenditure, three -year capital assignment obligation and 2025 guidelines unchanged

Bunzl PLC, the Specialist International Distribution and Services Group, publishes its annual results for the financial year that ended on December 31, 2024.

The highlights include:

• Sales increased by 3.1%*; With underlying trends in the second half, which is due to a low volume growth and a small loosening of the deflation.
• The adjusted operating profit* increased by 7.2% for constant exchange rates*, the reported operating profit rose by 1.3%.
• Further expansion of the operating margin* from 8.0% to 8.3%.
• The adapted result per share* rose by 5.5%with constant exchange rates. The registered profit per share decreased by 4.8%, which is primarily due to the loss of currency translation in connection with the disposal of our business in Argentina.
• Continuation of strong free cash flow* driven by the highly massaging generative model; Cash conversion of 93%.
• 32 year of annual dividend growth; Total dividend per share increases by 8.2%. Dividend cover is expected that it will continue to normalize in 2025.
• 13 acquisitions were announced in 2024 with annual record editions of 883 million GBP. Pipeline active; Further optimization of our portfolio with the disposal of two small companies in 2024 and additional disposal, which was announced today.
• 2025 Outlook: maintaining the guidelines for the robust sales growth of the groups ≠ and the operating range* in a line with 2024.
• Announced obligation to assign c. 700 million pounds per year primarily for valuable acquisitions and, if necessary, in the three years, which ended on December 31, 2027, capital returns.
• Completion of the first purchase of 250 million GBP in 2024; Further share purchases of 200 million GBP for 2025 in the course.

Frank van Zanten, Chief Executive Officer from Bunzl, commented on today's results, said:

“2024 was a year with significant strategic advances for Bunzl, in which our committed and entrepreneurial teams achieved a strongly adjusted operating profit growth, which was supported by a further expansion of our operational margin. 2024 was a record year for acquisitions with committed expenses of 883 million. We have a considerable headroom in order to continue to receive the shareholders with additional capital returns on self-fund accelerating acquisitions, and our acquisition pipeline remains active.

Bunzl has delivered a significant shareholder value over a longer period of time, with an annual growth of the adjusted profit per share of 9% since 2004. In 2004 we expanded our success story of annual dividend growth to 32 consecutive years, which reflects our resilient business model. Our strategy remains consistent, and I am very confident that Bunzl will continue to create resistant, sustainable and long -term value for everyone involved.“

Strategic progress:

• Further expansion of the operational margin, supported by the effects of higher margin acquisitions and good margin management; Own brand sales penetration of C.28% compared to 25% in 2023.
• 13 acquisitions were announced in several sectors and regions in 2024, including our first entry in Finland; Record annual committed expenditure of £ 883 million.
• Drive with 19 storage consolidations and moves as well as the acceleration of investments in digital solutions and automation.
• Processes 75% 15 digital compared to 72% in 2023, which further improves the stickiness of customers and increases the order for low touch.
• 71% Trust Index Score, a measurement that is achieved as part of the great place for the working survey; A strong and pleasant result in view of the satisfaction of the employees supports our continuous focus on providing a high customer service.

• Despite considerable uncertainties in connection with the broader economic and geopolitical landscape, the group expects robust sales growth in 2025 to constant exchange rates, which are due to announced acquisitions and slight underlying sales growth.
• It is expected that the group business margin* will be retained in a line in 2024 and, compared to pre -pandemic levels, remains much higher, which is due to higher margin acquisitions, as well as a good underlying margin increase.
• Other aspects of our entire year 2025 are: (1) The effective tax rate of the entire year is expected to be around 26.0%; (2) The group expects the net finance costs to be around £ 115 million.