Bunzl Plc · LSE:BNZL
Bunzl — FY2025 Earnings Presentation
42 slides from Bunzl's earnings presentation, Mar 2, 2026
Slide 1: Bunzl 2025 Full Year Results
BUNZL 2025 FULL YEAR Add subtitle RESULTS here
Slide 2: Introduction
INTRODUCTION Frank van Zanten, Chief Executive Officer
Slide 3: Driving Bunzl Forward
DRIVING BUNZL FORWARD Against challenging markets, decisive action taken to improve operational performance IMPROVEMENT ACTIONS DELIVERING STRONG PLATFORM FOR GROWTH 2025 was a challenging year While markets remain uncertain, expect some • Issues related to an organisational change in underlying rev
Slide 4: Full Year 2025 Financial Summary
FULL YEAR 2025 FINANCIAL SUMMARY Adjusted operating profit in line with expectations set out in April 2025 Driven by acquisition Revenue growth and slightly Operating 7.6% excluding c.£8m growth1 3.0% positive underlying margin2 7.7% credit3; vs. 8.3% in 2024 revenue growth2 (+0.4%) Adjusted (8.7)%
Slide 5: Business Update
BUSINESS UPDATE Frank van Zanten, Chief Executive Officer
Slide 6: Drivers of 2025 Performance
DRIVERS OF 2025 PERFORMANCE Execution issues in North America and weakening end market backdrop IMPACT OF ORGANISATIONAL CHANGE WEAKER CUSTOMER END MARKETS North America Distribution business (c.30% Group Global macroeconomic uncertainty impacted revenue) business and consumer sentiment Large nation
Slide 7: North America: Distribution – Update on Actions
NORTH AMERICA: DISTRIBUTION – UPDATE ON ACTIONS Actions supporting improved performance, despite challenging US foodservice market Re-engaged and motivated teams Impact Core business requirements restored Management change stabilised Service levels significantly Q4 2025 new Improved the business imp
Slide 8: North America: Distribution – Growth Focused
NORTH AMERICA: DISTRIBUTION – GROWTH FOCUSED Delivering in 2026 and beyond Effective sales and operations Increased market share, through both new customer model to drive growth wins and increased share of wallet of existing customers Coordinated approach with national / larger customers; empowered
Slide 9: Europe: Driving Business Wins and Operational Efficiencies
EUROPE: DRIVING BUSINESS WINS AND OPERATIONAL EFFICIENCIES Actions supporting value–added customer offering and driving operational benefits Operating efficiencies to deliver cost savings Active pipeline management of new and expanded business opportunities Significant warehouse consolidation in lar
Slide 10: 2025 – Further Strategic Highlights
2025 – FURTHER STRATEGIC HIGHLIGHTS Consistent progress on our strategic priorities Returned to underlying revenue growth2 Enhancing customer stickiness, with – Underlying revenue growth2 in H2 increased penetration of: – Stronger volume growth towards the – Own brand: 28% 30% end of the year, suppo
Slide 11: Financial Results and Outlook
FINANCIAL RESULTS Richard Howes, AND OUTLOOK Chief Financial Officer
Slide 12: Revenue
REVENUE Underlying revenue growth in H2 Revenue growth Revenue growth1: 3.0% £m 3.0%1 12,000 Organic revenue growth1,2: 0.1% 2.9% Underlying revenue growth2,3 0.4% 0.4% 1 11,500 (0.3)% Improved momentum through Underlying H2, supported by better than revenue change2,3: 11,845 expected volume growth
Slide 13: Income Statement
INCOME STATEMENT Moderate revenue growth offset by operating margin decline Adjusted operating profit REPORTED CONSTANT change1,2 £m 2025 2024 GROWTH EXCHANGE1 (4.3)% Revenue Gross margin 11,845.4 28.8% 11,776.4 28.8% 0.6% 3.0% Adjusted operating profit1 910.3 976.1 (6.7)% (4.3)% Operating margin1 O
Slide 14: Moderating Margin Decline
MODERATING MARGIN DECLINE Supported by actions taken and synergies achieved, despite market conditions Group operating margin1, excluding share-based payment credit2,3 (0.4)% Group margin moderation in H2, as expected, (0.9)% driven by: Includes consolidation – Good performance of foodservice in UK
Slide 15: Inflation Dynamics
INFLATION DYNAMICS More stable product cost inflation and continued focus on operating cost efficiencies SELLING PRICES – STABLE OVERALL OPERATING COST INFLATION – AT A MORE TYPICAL LEVEL – Pockets of deflation in cleaning & hygiene in France Wages (c.50% of total operating costs) and parts of the U
Slide 16: North America / Continental Europe
NORTH AMERICA / CONTINENTAL EUROPE Operational and market challenges in North America; H2 margin broadly stable in Europe North America1 Continental Europe1 CONSTANT CONSTANT £m 2025 2024 REPORTED EXCHANGE2 UNDERLYING2 2025 2024 REPORTED EXCHANGE2 UNDERLYING2 Revenue 6,276.7 6,568.1 (4.4)% (1.2)% (0
Slide 17: UK & Ireland / Rest of the World
UK & IRELAND / REST OF THE WORLD Strong growth from acquisitions in UK&I; RoW growth despite Brazil challenges UK & Ireland1 Rest of the World1 CONSTANT CONSTANT £m 2025 2024 REPORTED EXCHANGE2 UNDERLYING2 2025 2024 REPORTED EXCHANGE2 UNDERLYING2 Revenue 1,883.6 1,625.8 15.9% 15.9% 1.4% 1,243.1 1,20
Slide 18: Cash Flow
CASH FLOW Strong annual cash generation is a fundamental strength of Bunzl Cash conversion1 over the last 10 years Cash conversion 1 £m 2025 2024 95% Operating cash flow1,2 834.6 879.5 107% 103% 102% 101% Net interest paid (excluding lease liabilities) (76.4) (65.2) 99% 97% 96% 95% Continued strong
Slide 19: Balance Sheet
BALANCE SHEET Leverage ratio at lower end of target range; returns impacted by margin decline DECEMBER DECEMBER Adjusted net debt to EBITDA1 Adjusted net debt £m 2025 2024 2.3x to EBITDA1 Intangible assets 3,618.1 3,683.8 TARGET 2.0x-2.5x 2.0x Right-of-use assets 682.1 697.6 2.0x 2.0x 2.0x Property,
Slide 20: Capital Allocation Policy
CAPITAL ALLOCATION POLICY Capital allocation focused on bolt-on acquisitions that generate strong returns Capital allocation priorities unchanged – Leverage at the low end of target range (2.0-2.5x) 1 Invest in the business – Strong cash generation supports capital allocation Low risk, high-return
Slide 21: Dividend Track Record
DIVIDEND TRACK RECORD Dividend cover supports sustainable annual growth 0.3% 74.1 33 years Total 2025 of consecutive dividend per annual dividend share growth1 increases Dividend per share 2025 dividend CAGR c.9% cover 2.4x Sustainable annual growth supported by conservative 4.0 dividend cover 92 93
Slide 22: 2026 Outlook Unchanged
2026 OUTLOOK UNCHANGED A more stable profit outlook – We reiterate the 2026 guidance that we published in our pre-close statement on 17th December 2025 – Uncertainties relating to the wider economic and geopolitical landscape are expected to continue – We expect moderate revenue growth in 20261, dri
Slide 23: Strategy Update
STRATEGY UPDATE Frank van Zanten, Chief 2025 FULL YEAR RESULTS Executive Officer 23
Slide 24: Confident in Bunzl's Growth Opportunity
CONFIDENT IN BUNZL’S GROWTH OPPORTUNITY Long-term compounding growth strategy COMPOUNDING GROWTH MODEL – Win new customers – Fragmented industry – Sell more to existing – Large end markets customers – Strong track record Organic revenue – Expand product ranges, Acquisitions – Value-accretive support
Slide 25: Organic Growth – Wegmans Case Study
ORGANIC GROWTH Organic revenue growth A strengthened focus on revenue growth – Wegmans case study Case study: North America Distribution: new business in Q4 – New sales and operations model an enabler to business win, and supported a smooth on-boarding with limited disruption Significant expansion o
Slide 26: A Continued Focus on Bolt-Ons
A CONTINUED FOCUS ON BOLT-ONS Acquisitions Very attractive returns; significant opportunity; improving activity outlook Significant Bolt-on acquisitions 1core to strategy Portfolio opportunity – 74 out of 77 announced acquisitions (2020-2025) were bolt-ons: discipline – c.£300m average annual commit
Slide 27: Improving Outlook for Acquisitions in 2026
IMPROVING OUTLOOK FOR ACQUISITIONS IN 2026 Acquisitions Acquisition spend impacted by macro environment in 2025 2025: 8 acquisitions in 7 countries, across 4 sectors Update after first full year of trading: – Attractive businesses with committed spend of £132m – 2025 activity impacted by macroeconom
Slide 28: Proactive Operational Efficiency Programmes
PROACTIVE OPERATIONAL EFFICIENCY PROGRAMMES Operating Ongoing focus on efficiency opportunities efficiencies Warehouse consolidations Automation projects and relocations Automation projects assessed on case-by-case basis - two examples: 36 – Ongoing project to extend our largest warehouse in Denmark
Slide 29: Value-Added Customer Offering Backed by Global Scale
VALUE-ADDED CUSTOMER OFFERING BACKED BY GLOBAL SCALE Resilient business model Strong customer offering; locally driven, enabled by scale One-stop shop for non-food items Attractive business fundamentals Customer-focused proposition SOURCE Essential products and solutions c.30% of Group employees cus
Slide 30: Driving Bunzl Forward
DRIVING BUNZL FORWARD Strong actions being taken to drive performance While markets remain uncertain, expect some underlying revenue growth1 in 2026 Expect more stable 2026 adjusted operating profit1 to be a foundation for future profit growth Significant consolidation opportunity and active pipelin
Slide 31: Q&A
Q&A 2025 FULL YEAR RESULTS 31
Slide 32: Appendices
APPENDICES 2025 FULL YEAR RESULTS 32
Slide 33: Appendix 1.1 – Alternative Performance Measures
APPENDIX 1.1 Alternative performance measures This presentation includes various performance measures defined under International Financial Reporting Standards (‘IFRS’) as well as a number of alternative performance measures. The principal alternative performance measures used in this presentation a
Slide 34: Appendix 1.2 – Alternative Performance Measures
APPENDIX 1.2 Alternative performance measures Return on invested capital - The ratio of adjusted operating profit to the average of the month end invested capital (being equity after adding back net debt, lease liabilities, net defined benefit pension scheme assets/liabilities, cumulative amortisati
Slide 35: Appendix 2 – Statutory P&L
APPENDIX 2 Statutory P&L £m 2025 2024 Revenue 11,845.4 11,776.4 Adjusted operating profit1 910.3 976.1 Operating margin1 7.7% 8.3% Adjusting items (175.0) (176.8) Operating profit 735.3 799.3 Net finance expense (126.7) (105.4) Disposal of businesses 11.9 (20.3) Profit before income tax 620.5 673.6
Slide 36: Appendix 3 – Sector Performance
APPENDIX 3 Sector performance Safety Cleaning & Hygiene Healthcare Foodservice Grocery1 Retail Revenue opportunity in the medium term Sector commentary – Stable organic revenue in safety; In North America, tariff-related – Organic revenue growth – Slight decline in – Moderate decline in price inflat
Slide 37: Appendix 4 – Acquisitions Announced Year to Date
APPENDIX 4 Acquisitions announced year to date • Completed March 2025 • Completed July 2025 • Completed July 2025 • Completed July 2025 • Dutch business specialising in sterile • Spanish distributor of foodservice and • One of the largest healthcare • Brazilian distributor of own brand product packa
Slide 38: Appendix 5 – Acquisition Growth
APPENDIX 5 Acquisition growth 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Number of 7 7 9 8 7 2 9 10 13 11 17 22 14 15 6 3 9 14 12 19 15 8 acquisitions Committed acquisition 302 129 162 197 123 6 126 185 277 295 211 327 184 616 183 124 445 508 322 468 883 132 spend (£m) Annuali
Slide 39: Appendix 6 – Higher Margin Sectors by Country
APPENDIX 6 Focus on higher margin sectors in recent years; significant opportunities remain to expand COUNTRY FOODSERVICE GROCERY C&H SAFETY RETAIL HEALTHCARE COUNTRY FOODSERVICE GROCERY C&H SAFETY RETAIL HEALTHCARE USA ● ● ● ● ● Austria ● Canada ● ● ● ● ● Czech Republic ● ● Mexico ● ● ● Hungary ● ●
Slide 40: Appendix 7 – Revenue by Customer Market
APPENDIX 7 Revenue by customer market in FY 2025 Safety Foodservice Personal protection and safety equipment, including 14.9% 31.2% Non-food consumables, including food packaging, gloves, boots, hard hats, ear and eye protection and disposable tableware, guest amenities, catering other workwear, as
Slide 41: Appendix 8 – Long-Term Growth
APPENDIX 8 Long-term growth Proven Revenue (£bn) Adjusted operating profit1 (£m) compounding 910 11.8 growth strategy 169 2.4 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Adjusted EPS1 (p) Dividend per Share (p) 7
Slide 42: Disclaimer
DISCLAIMER This document has been prepared by Bunzl plc (the ‘Company’) solely for use at the presentation of the Company’s results announcement in respect of the year ended 31 December 2025. For the purposes of this disclaimer, ‘Presentation’ shall mean this document, the oral presentation of the s