Annual results for the year ended 31 December
Bunzl plc, the specialist international distribution and services Group, today publishes its annual results for the year ended 31 December 2019.
Financial results | As reported under IFRS 16 2019 |
IAS 17Δ 2019 |
As reported under IAS 17 2018 |
IAS 17Δ growth at actual exchange |
IAS 17Δ growth at constant exchange |
---|---|---|---|---|---|
Revenue | £9,326.7m | £9,326.7m | £9,079.4m | 2.7% | 1.0% |
Adjusted operating profit* | £653.3m | £630.9m | £614.0m | 2.8% | 1.5% |
Adjusted profit before income tax* | £578.2m | £579.1m | £559.0m | 3.6% | 2.4% |
Adjusted earnings per share* | 132.2p | 132.4p | 129.6p | 2.2% | 1.0% |
Dividend for the year | 51.3p | 51.3p | 50.2p | 2.2% | |
Statutory results | As reported under IFRS 16 2019 |
As reported under IAS 17 2018 |
|||
Operating profit | £528.4m | £466.2m | |||
Profit before income tax | £453.3m | £424.8m | |||
Basic earnings per share | 104.8p | 98.4p |
Highlights include:
- Revenue up 1.0% at constant exchange rates, up 2.7% at actual exchange rates
- Operating margin* up from 6.7% to 6.8% at constant exchange rates on a consistent IAS 17 basis, unchanged at actual exchange rates
- Adjusted profit before income tax* up 2.4% at constant exchange rates on a consistent IAS 17 basis, up 3.6% at actual exchange rates
- Committed acquisition spend of £124 million during the year with four acquisitions announced in recent months (annualised revenue £300 million) and a promising pipeline
- Return on average operating capital* 48.4% with return on invested capital* 14.6% on an IAS 17 basis
- Continued strong cash conversion* of 101% and free cashflow growth of 10%
- 27 year track record of dividend growth continues with a 2.2% increase in the dividend for the year
Commenting on today’s results, Frank van Zanten, Chief Executive Officer of Bunzl, said:
“Against the background of mixed macroeconomic and market conditions which prevailed during 2019 across the countries and sectors in which we operate, I am pleased to report that Bunzl has produced another resilient performance with an increase in operating margin. It is particularly good to see continued strong cash conversion and free cash flow growth.
Looking forward, although we continue to see challenging trading conditions in many of our markets, our strong competitive position, diversified and resilient businesses and ability to consolidate our fragmented markets further should lead to improved growth at constant exchange rates principally due to the impact of the good level of recent acquisition activity. Bunzl has a strong balance sheet with significant financial capacity and acquisitions remain a key element of our strategy. The acquisition pipeline is promising and a number of discussions are ongoing.”
Δ |
Following the adoption of IFRS 16 ‘Leases’ with effect from 1 January 2019, because the Group has adopted the accounting standard using the modified retrospective approach to transition and has accordingly not restated prior periods, the results for the year ended 31 December 2019 are not directly comparable with those reported in the prior year under the previous applicable accounting standard, IAS 17 ‘Leases’. To provide meaningful comparatives, the results for the year ended 31 December 2019 have therefore also been presented under IAS 17 with the growth rates shown on an IAS 17 basis. See Notes 1 and 2 for a reconciliation of the IAS 17 alternative performance measures to the equivalent IFRS measures. |
* | Alternative performance measure (see Note 3). |
Enquiries:
Bunzl plc | Tulchan |
Frank van Zanten, Chief Executive Officer | David Allchurch |
Richard Howes, Chief Financial Officer |
Martin Robinson |
Tel: +44 (0)20 7725 5000 | Tel: +44 (0)20 7353 4200 |
Note:
A webcast of the presentation to analysts is now available on the Company’s website at www.bunzl.com.