Financial highlights
Revenue
+3.1%at constant exchange rates
Adjusted operating profit*
+7.2%at constant exchange rates
Adjusted earnings per share*
+5.5%at constant exchange rates
Dividend per share
+8.2%For the year ended 31 December 2024. *Alternative performance measure
| Financial results | 2024 | 2023 | Growth as reported | Growth at constant exchange rate◊ |
| Revenue | £11,776.4m | £11,797.1m | (0.2%) | 3.1% |
| Adjusted operating profit* | £976.1m | £944.2m | 3.4% | 7.2% |
| Adjusted profit before income tax* | £872.9m | £853.7m | 2.2% | 6.2% |
| Adjusted earnings per share* | 194.3p | 191.1p | 1.7% | 5.5% |
| Dividend per shareΔ | 73.9p | 68.3p | 8.2% | |
| Statutory results | ||||
| Operating profit | £799.3m | £789.1m | 1.3% | |
| Profit before income tax | £673.6m | £698.6m | (3.6%) | |
| Basic earnings per share | 149.6p | 157.1p | (4.8%) |
Highlights include:
- Revenue increased by 3.1% at constant exchange rates*; with underlying trends improving in the second half following a return to volume growth and a small easing of deflation
- Adjusted operating profit* increased by 7.2% at constant exchange rates, reported operating profit increased by 1.3%
- Further expansion of operating margin* from 8.0% to 8.3%
- Adjusted earnings per share* increased by 5.5% at constant exchange rates, reported basic earnings per share declined by 4.8%, largely due to the currency translation driven loss related to the disposal of our business in Argentina
- Continued strong free cash flow* driven by highly cash generative model; cash conversion of 93%
- 32nd year of consecutive annual dividend growth; total dividend per share increase of 8.2%. Dividend cover expected to normalise further in 2025
- 13 acquisitions announced in 2024 with record annual committed spend of £883 million; pipeline active; additional disposal announced today
- 2025 outlook: maintaining guidance for robust Group revenue growth≠ and operating margin in-line with 2024
- Announced commitment to allocate c.£700 million per annum primarily towards value-accretive acquisitions and, if required, returns of capital, in each of the three years ending 31 December 2027
- Completion of initial £250 million share buyback in 2024; further £200 million share buyback for 2025 underway
* Alternative performance measure - see Note 3 of the 2024 Annual Report for further details of the alternative performance measures
◊ Growth at constant exchange rates is calculated by comparing the 2024 results to the 2023 results retranslated at the average exchange rates used for 2024
∆ The Board is recommending a 2024 final dividend of 53.8p per share. Including the 2024 interim dividend per share of 18.2p the total dividend per share of 73.9p represents an 8.9% increase compared to the 2023 total dividend per share
Consolidated income statement
For the year ended 31 December 2024
| 2024 | 2023 | Actual exchange | Constant exchange◊ | |
| £m | £m | |||
| Revenue | 11,776.4 | 11,797.1 | (0.2%) | 3.1% |
| Adjusted operating profit* | 976.1 | 944.2 | 3.4% | 7.2% |
| Finance income | 72.6 | 60.4 | ||
| Finance expense | (178.0) | (150.9) | ||
| Adjusted profit before income tax* | 872.9 | 853.7 | 2.2% | 6.2% |
| Tax on adjusted profit | (222.4) | (213.4) | ||
| Adjusted profit for the year* | 650.5 | 640.3 | 1.6% | 5.5% |
| Adjusted earnings per share* | 194.3p | 191.1p | 1.7% | 5.5% |
| Adjusted operating profit* | 976.1 | 944.2 | 3.4% | 7.2% |
| Adjusted for: | ||||
| Amortisation including software | (148.3) | (135.6) | ||
| Acquisition related items through operating profit | (31.7) | (19.5) | ||
| Operating profit | 799.3 | 789.1 | 1.3% | |
| Finance income | 72.6 | 60.4 | ||
| Finance expense | (178.0) | (150.9) | ||
| Disposal of businesses | (20.3) | - | ||
| Profit before income tax | 673.6 | 698.6 | (3.6%) | |
| Income tax | (172.6) | (172.4) | ||
| Profit for the year | 501.0 | 526.2 | (4.8%) | |
| Earnings per share attributable to the Company's equity holders | ||||
| Basic | 149.6p | 157.1p | (4.8%) | |
| Diluted | 148.7p | 156.0p |
* See Note 3 of the 2024 Annual Report for further details of the alternative performance measures.
◊ Growth at constant exchange rates is calculated by comparing the 2024 results to the 2023 results retranslated at the average exchange rates used for 2024.
Consolidated balance sheet
At 31 December 2024
| 2024 | 2023 | |
| £m | £m | |
| Assets | ||
| Property, plant and equipment | 213.3 | 159.4 |
| Right-of-use assets | 697.6 | 616.3 |
| Intangible assets | 3,683.8 | 3,242.1 |
| Defined benefit pension assets | 35.8 | 69 |
| Derivative financial assets | – | 0.1 |
| Deferred tax assets | 14.1 | 14.2 |
| Total non-current assets | 4,644.6 | 4,101.1 |
| Inventories | 1,760.9 | 1,621.1 |
| Trade and other receivables | 1,634.1 | 1,578.5 |
| Income tax receivable | 13.0 | 8.7 |
| Derivative financial assets | 28.0 | 11.7 |
| Cash and cash equivalents | 1,432.9 | 1,426.1 |
| Assets classified as held for sale | 15.7 | – |
| Total current assets | 4,884.6 | 4,646.1 |
| Total assets | 9,529.2 | 8,747.2 |
| Equity | ||
| Share capital | 106.4 | 108.6 |
| Share premium | 212.1 | 205.2 |
| Translation reserve | (324.6) | (170.2) |
| Other reserves | 24.3 | 16.7 |
| Retained earnings | 2,769.2 | 2,806.0 |
| Total equity attributable to the Company’s equity holders | 2,787.4 | 2,966.3 |
| Non-controlling interests | 3.3 | – |
| Total equity | 2,790.7 | 2,966.3 |
| Liabilities | ||
| Interest bearing loans and borrowings | 1,361.7 | 1,417.1 |
| Defined benefit pension liabilities | 16.0 | 19.6 |
| Other payables | 255.4 | 176.1 |
| Income tax payable | – | 0.5 |
| Provisions | 49.7 | 75.8 |
| Lease liabilities | 573.7 | 512.4 |
| Derivative financial liabilities | 82.8 | 78.8 |
| Deferred tax liabilities | 263.3 | 190.1 |
| Total non-current liabilities | 2,602.6 | 2,470.3 |
| Bank overdrafts | 987.9 | 874.2 |
| Interest bearing loans and borrowings | 619.2 | 130.0 |
| Trade and other payables | 2,206.1 | 2,071.6 |
| Income tax payable | 63.7 | 47.0 |
| Provisions | 57.1 | 10.0 |
| Lease liabilities | 180.4 | 152.1 |
| Derivative financial liabilities | 15.8 | 25.7 |
| Liabilities relating to assets classified as held for sale | 5.7 | – |
| Total current liabilities | 4,135.9 | 3,310.6 |
| Total liabilities | 6,738.5 | 5,780.9 |
| Total equity and liabilities | 9,529.2 | 8,747.2 |
Consolidated cash flow statement
For the year ended 31 December 2024
| 2024 | 2023 | |
| £m | £m | |
| Cash flow from operating activities | ||
| Profit before income tax | 673.6 | 698.6 |
| Adjusted for: | ||
| Net finance expense | 105.4 | 90.5 |
| Amortisation excluding software | 148.3 | 135.6 |
| Acquisition related items through operating profit | 31.7 | 19.5 |
| Non-recurring pension scheme credit | (3.2) | - |
| Disposal of businesses | 20.3 | - |
| Adjusted operating profit | 976.1 | 944.2 |
| Adjustments: | ||
| Depreciation and software amortisation | 235.8 | 207.2 |
| Other non-cash items | 18.6 | 6.5 |
| Working capital movement | (97.1) | (28.4) |
| Cash generated from operations before acquisition related items | 1,133.4 | 1,129.5 |
| Cash outflow from acquisition related items | (42.0) | (36.9) |
| Income tax paid | (180.5) | (188.6) |
| Cash inflow from operating activities | 910.9 | 904.0 |
| Cash flow from investing activities | ||
| Interest received | 61.4 | 54.4 |
| Purchase of property, plant and equipment and software | (54.4) | (58.3) |
| Sale of property, plant and equipment | 17.2 | 2.1 |
| Purchase of businesses net of cash acquired | (636.2) | (337.7) |
| Disposal of businesses net of cash disposed | 2.9 | - |
| Cash outflow from investing activities | (609.1) | (339.5) |
| Cash flow from financing activities | ||
| Interest paid excluding interest on lease liabilities | (126.6) | (107.6) |
| Dividends paid | (228.6) | (209.7) |
| Increase in borrowings | 561.7 | - |
| Repayment of borrowings | (132.9) | (159.5) |
| Receipts/(payments) on settlement of foreign exchange contracts | 24.2 | 21.6 |
| Payment of lease liabilities – principal | (178.2) | (159.4) |
| Payment of lease liabilities – interest | (38.5) | (28.6) |
| Proceeds from issue of ordinary shares to settle share options | 7.0 | 5.9 |
| Proceeds from exercise of market purchase share options | 53.7 | 46.8 |
| Purchase of own shares | (247.9) | |
| Purchase of employee trust shares | (75.0) | (76.4) |
| Cash outflow from financing activities | (381.1) | (666.9) |
| Decrease in cash, cash equivalents and overdrafts | (79.3) | (102.4) |
| Cash, cash equivalents and overdrafts at start of year | 551.9 | 678.1 |
| Decrease in cash, cash equivalents and overdrafts | (79.3) | (102.4) |
| Currency translation | (27.6) | (23.8) |
| Cash, cash equivalents and overdrafts at end of year | 445.0 | 551.9 |
| Alternative performance measures* | 2024 | 2023 |
| £m | £m | |
| Cash generated from operations before acquisition related items | 1,133.4 | 1,129.50 |
| Purchase of property, plant and equipment and software | (54.4) | (58.3) |
| Sale of property, plant and equipment and software | 17.2 | 2.1 |
| Payment of lease liabilities | (216.7) | (188.0) |
| Operating cash flow | 879.5 | 885.3 |
| Adjusted operating profit | 976.1 | 944.2 |
| Add back depreciation of right-of-use assets | 186.1 | 166.1 |
| Deduct payment of lease liabilities | (216.7) | (188.0) |
| Lease adjusted operating profit | 945.5 | 922.3 |
| Cash conversion (operating cash flow as a percentage of lease adjusted operating profit) | 93% | 96% |
* See Note 3 of the 2024 Annual Report for further details of the alternative performance measures.
Five year review
| IFRS 2024 £m |
IFRS 2023 £m |
IFRS 2022 £m |
IFRS 2021 £m |
IFRS 2020 £m |
|
| Revenue | 11,776.4 | 11,797.1 | 12,039.5 | 10,285.1 | 10,111.1 |
| Operating profit | 799.3 | 789.1 | 701.6 | 623.3 | 618.5 |
| Finance income | 72.6 | 60.4 | 22.3 | 10.7 | 10.4 |
| Finance expense | (178.0) | (150.9) | (90.2) | (65.3) | (73.2) |
| Disposal of businesses | (20.3) | - | 0.9 | - | - |
| Profit before income tax | 673.6 | 698.6 | 634.6 | 568.7 | 555.7 |
| Income tax | (172.6) | (172.4) | (160.2) | (125.9) | (125.7) |
| Profit for the year | 501.0 | 526.2 | 474.4 | 442.8 | 430.0 |
| Basic earnings per share attributable to the Company's equity holders | 149.6p | 157.1p | 141.7p | 132.7p | 128.8p |
| Alternative performance measures* | |||||
| Adjusted operating profit | 976.1 | 944.2 | 885.9 | 752.8 | 778.4 |
| Adjusted profit before income tax | 872.9 | 853.7 | 818.0 | 698.2 | 715.6 |
| Adjusted profit for the year | 649.9 | 640.3 | 616.8 | 542.5 | 550.5 |
| Adjusted earnings per share attributable to the Company's equity holders | 194.3p | 191.1 | 184.3 | 162.5p | 164.9p |
* See Note 3 of the 2024 Annual Report for further details of the alternative performance measures.
