Financial information

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.

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