Bunzl PLC

Latest Results (17.12.2024):

Revenue Growth

Bunzl PLC's revenue for the year ending 31 December 2024 is expected to be approximately 3% higher than in 2023 at constant exchange rates. However, at actual exchange rates, the revenue is anticipated to be between 0% and 1% lower. This growth is primarily driven by acquisitions, despite a slight decline in underlying revenue over the year.

Operating Profit

The Group's adjusted operating profit for 2024 is projected to show a strong increase compared to 2023 at constant exchange rates. This improvement is attributed to the company's strategic acquisitions and operational efficiencies, although there is a slight impact expected due to persistent deflation, particularly in Continental Europe.

Operating Margin

Bunzl PLC anticipates a strong operating margin for 2024, which is moderately above the level reported for 2023. The company expects to maintain this margin into 2025, driven by higher margin acquisitions and a good underlying margin increase, keeping it substantially higher compared to pre-pandemic levels.

Acquisitions and Investments

In 2024, Bunzl PLC committed a record spend of more than £850 million on acquisitions, including the purchase of C&C Group and Comodis. These acquisitions are expected to enhance Bunzl's offerings in the UK and France, respectively. The company also initiated a £250 million buyback, with approximately £200 million completed, and plans a further £200 million buyback in 2025.

Future Outlook

Looking ahead to 2025, Bunzl PLC expects robust revenue growth at constant exchange rates, driven by announced acquisitions and slight underlying revenue growth. The Group plans to allocate around £700 million per annum for value-accretive acquisitions and potential capital returns, aiming to return to its target leverage range by the end of 2027.