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30 Aug 2022
Bunzl plc

Half yearly financial report for six months ended 30 June 2022

Bunzl plc, the specialist international distribution and services Group, today publishes its half yearly financial report for the six months ended 30 June 2022.

 

 

Financial results

 

 

H1 22

 

 

H1 21

 

Growth

as reported

Growth

at constant exchange*

Revenue

£5,650.8m

£4,866.6m

16.1%

12.4%

Adjusted operating profit*

£411.4m

£366.8m

12.2%

8.6%

Adjusted profit before income tax*

£380.5m

£338.4m

12.4%

8.8%

Adjusted earnings per share*

85.7p

77.7p

10.3%

6.9%

Interim dividend

17.3p

16.2p

6.8%

 

 

Statutory results

 

 

 

 

Operating profit

£327.5m

£304.1m

7.7%

 

Profit before income tax

£296.6m

£275.7m

7.6%

 

Basic earnings per share

66.2p

63.3p

4.6%

 

Highlights include:

  • Strong revenue growth of 12.4% at constant exchange rates, driven by product cost inflation and continued volume recovery in the base business, and growth from acquisitions
  • Adjusted operating profit* increase of 8.6% at constant exchange rates and rise in adjusted earnings per share* of 6.9%; Reported operating profit up 7.7% and reported basic earnings per share up 4.6%
  • Adjusted operating profit 41% higher at constant exchange rates compared with the first half of 2019, demonstrating the strength and resilience of the Bunzl model
  • Resilient free cash flow generation, with cash conversion of 86% despite the impact of inflation and greater inventory held to support service levels to customers during supply chain disruption
  • Interim dividend per share growth of 6.8% consistent with the Group’s commitment to ensuring sustainable dividend growth
  • Net debt to EBITDA*of 1.6 times provides substantial headroom for further acquisitions
  • Six acquisitions announced year to date with a total committed spend of more than £225 million

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

“The strength of our first half results is testament to the dedication of our colleagues and the resilience of our value-added business model. Over the period, our teams have been agile in navigating substantial inflation and supply chain disruption, while supporting recovery in the base business and continuing to provide our customers with essential products and services that are crucial to their operations. Our good performance has also been enabled by the depth and flexibility of our global supply chains. 

We remain focused on continuing to execute our long-term compounding growth strategy. So far this year we have announced six acquisitions and have an active pipeline with good balance sheet headroom. We believe the merits of joining Bunzl have been amplified over the last few years, supporting our long-term strategic commitment to investing in businesses that drive growth and returns for the Group. Sustainability remains a key focus across the Group, and we continue to use our position and expertise to innovate and enable customers to transition to packaging products that support the circular economy, as well as investing in solutions that benefit the environment, communities, our supply chain and our people.

While mindful of the economic outlook, I believe our talented teams, the inherent resilience of our business model and diversification of our portfolio across sectors and regions, as well as our consistent focus on our strategic priorities, will continue to support the Group’s performance and maintain our strong track record of value creation.”

You can read the full report here: Half yearly financial report for six months ended 30 June 2022

Enquiries:

Bunzl plc

Frank van Zanten, Chief Executive Officer

Richard Howes, Chief Financial Officer

Sunita Entwisle, Head of Investor Relations

Tel: +44 (0)20 7725 5000

Tulchan

Martin Robinson

Olivia Peters

Tel: +44 (0)20 7353 4200

Note: A webcast of today’s presentation to analysts and investors will be available on www.bunzl.com commencing at 9.30 am.

*  Alternative performance measure (see Note 2).

◊  Growth at constant exchange rates is calculated by comparing the H1 22 results to the H1 21 results retranslated at the average exchange rates used for H1 22.

♯ Base business defined as underlying revenue excluding the top Covid-19 related products (including masks, sanitisers, disposable gloves, disinfectants, coveralls, disposable wipes, face shields and eye protection).

    At average exchange rates and based on historical accounting standards, in accordance with Group’s external debt covenants.