Bunzl Plc · LSE:BNZL
Bunzl — H1 2025 Earnings Presentation
34 slides from Bunzl's earnings presentation, 2025
Slide 1: Bunzl 2025 Half Year Results
BUNZL 2025 HALF YEAR Add RESULTS subtitle here
Slide 2: Introduction
INTRODUCTION Frank van Zanten, Chief Executive Officer
Slide 3: Half Year 2025 Summary
HALF YEAR 2025 SUMMARY Profit in-line with expectations; operational performance improvement on track Decline driven by Bunzl Driven by acquisitions; Adjusted Revenue North America Distribution growth1 4.2% broadly stable underlying operating (7.6)% and certain larger revenue profit2change1 business
Slide 4: Focused on Improving Performance
FOCUSED ON IMPROVING PERFORMANCE Fixing issues our priority; committed to returning to consistent performance Confident in actions being taken; early positive Committed to building further on Bunzl’s indicators of success historic success Strong business model – While early days, actions performing
Slide 5: Strategy Update
STRATEGY UPDATE Frank van Zanten, Chief Executive Officer
Slide 6: North America Distribution: Overview
NORTH AMERICA DISTRIBUTION: OVERVIEW A market-leading, established and scale business NORTH AMERICA DISTRIBUTION Scale and expertise supports a strong customer proposition… #1 of c.35 operating companies in North America – Around half of North America revenue National Scale with Efficient Category –
Slide 7: North America: Distribution – Strategic Focus
NORTH AMERICA: DISTRIBUTION – STRATEGIC FOCUS Strategic plan remains the right one, with some areas successfully delivered 2019 SNAPSHOT STRATEGIC RESPONSE 2024 SNAPSHOT Market position A strong market leader Strengthened leadership position A strong market leader Organisational Branches responsible
Slide 8: North America: Distribution – Execution Issues
NORTH AMERICA: DISTRIBUTION – EXECUTION ISSUES Execution issues in certain areas; corrective actions delivering positive early signs H1 2025: Fewer offsets to execution Fast corrective action implemented: challenges, alongside weaker market – Management change, Jim McCool leading Early indicators po
Slide 9: North America: Distribution - Future Platform
NORTH AMERICA: DISTRIBUTION - FUTURE PLATFORM Our focus for 2025 and beyond Continued market leadership Effective sales and operations model with a strong focus on sales development and expertise in logistics Coordinated approach with national / larger customers; empowered and agile approach with lo
Slide 10: Continental Europe: Anticipate an Improved H2
CONTINENTAL EUROPE: ANTICIPATE AN IMPROVED H2 Expect benefit of actions taken and easing comparatives in H2 Operating margin decline in H1 2025 While market remains challenging, expect follows margin decline in H2 2024 actions to drive improved performance in H2 • Challenging operating environment •
Slide 11: Long-Term Compounding Growth Strategy
LONG-TERM COMPOUNDING GROWTH STRATEGY Continued focus on strategic compounding priorities across the Group CONSISTENT COMPOUNDING GROWTH MODEL – Win new customers – Fragmented industry – Sell more to existing – Large end markets customers Organic – Strong track record revenue – Expand product ranges
Slide 12: Compounding Strategy: Acquisition Pipeline Active
COMPOUNDING STRATEGY: ACQUISITION PIPELINE ACTIVE Timing of acquisitions impacted by macro economic uncertainty Acquisitions August year-to-date Good momentum in recent years Chile Entry into healthcare in Chile Significant acquisition opportunity remains Complementary business; packaging Netherland
Slide 13: Financial Results and Outlook
FINANCIAL RESULTS Richard Howes, AND OUTLOOK Chief Financial Officer 13
Slide 14: Revenue
REVENUE Underlying revenue broadly stable over the first half; improved Q2 vs Q1 Revenue change vs H1 £ million Revenue change1: 4.2% 6000 20241 4.9% 4.2% Organic revenue change1,2: (0.7)% (0.5)% (0.2)% Underlying revenue change1,2 5000 (0.2)% 5,525 Underlying revenue1,2: 5,760 With both price and v
Slide 15: Income Statement
INCOME STATEMENT Operating margin decline driven by businesses in North America and Continental Europe Adjusted operating REPORTED CONSTANT £m H1 2025 H1 2024 GROWTH EXCHANGE1 profit1 decline vs H1 Revenue 5,759.6 5,711.5 0.8% 4.2% 2024 2 Adjusted operating profit1 404.5 455.5 (11.2)% (7.6)% (7.6)%
Slide 16: Business Area Performance
BUSINESS AREA PERFORMANCE North America and Europe impacted by performance in certain larger businesses North America1 Continental Europe1 CONSTANT CONSTANT £m H1 2025 H1 2024 REPORTED EXCHANGE2 UNDERLYING2 H1 2025 H1 2024 REPORTED EXCHANGE2 UNDERLYING2 Revenue 3,062.8 3,234.8 (5.3)% (2.3)% (1.2)% 1
Slide 17: Business Area Performance
BUSINESS AREA PERFORMANCE UK & Ireland growth driven by Nisbets; Brazil more challenging in Rest of World UK & Ireland1 Rest of the World1 CONSTANT CONSTANT £m H1 2025 H1 2024 REPORTED EXCHANGE2 UNDERLYING2 H1 2025 H1 2024 REPORTED EXCHANGE2 UNDERLYING2 Revenue 904.2 689.1 31.2% 31.5% 0.3% 606.2 600
Slide 18: Cash Flow
CASH FLOW Better than expected cash conversion; free cash flow impacted by profit decline H1 cash conversion1 over the last 10 years Cash conversion1 £m H1 2025 H1 2024 97% Operating cash flow1,2 376.9 442.8 112% Net interest paid (excluding lease liabilities) (49.6) (33.9) 100% 100% Income tax paid
Slide 19: Balance Sheet
BALANCE SHEET Increase in leverage; broadly in-line with target leverage range JUNE DECEMBER Adjusted net debt to EBITDA1 Adjusted net debt £m 2025 2024 to EBITDA1,2 Intangible assets 3,557.8 3,683.8 2.3x Right-of-use assets 655.4 697.6 1.9x TARGET 2.0x 2.0x 1.9x Property, plant and equipment 218.2
Slide 20: Capital Allocation Policy
CAPITAL ALLOCATION POLICY Relevered in H1 2025 Bunzl at an appropriate leverage level given macro uncertainty Capital allocation priorities unchanged 1. Invest in the business ▪ Low risk, high-return investments remain our priority Previously announced Adjusted 2.1x ▪ Asset light business model net
Slide 21: Dividend Track Record
DIVIDEND TRACK RECORD Conservative dividend cover supports sustainable annual growth 0.5% 73.9 32 years Interim 2025 of consecutive dividend per annual dividend share growth1 increases Dividend per share 2025 dividend CAGR 9.5% cover expected c.2.4x Sustainable annual growth supported by conservativ
Slide 22: 2025 Outlook
2025 OUTLOOK Guidance reiterated GUIDANCE MAINTAINED SECOND HALF DRIVERS – As per our statement on Other aspects of FY 2025 – The Group’s second half operating margin1 is seasonally 16th April, the Group higher and expected to benefit from actions taken guidance expects moderate revenue growth in 20
Slide 23: Key Takeaways
KEY TAKEAWAYS Frank van Zanten, Chief Executive Officer 23
Slide 24: Committed to Building on Bunzl's Historical Delivery
COMMITTED TO BUILDING ON BUNZL’S HISTORICAL DELIVERY Fixing issues our priority; committed to returning to more consistent performance Adjusted operating profit1 (£m) 976 Confident in actions being taken; early positive indicators of success 169 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Slide 25: Appendices
APPENDICES 25
Slide 26: 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 27: 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 28: Appendix 2: Statutory P&L
APPENDIX 2 Statutory P&L £m H1 2025 H1 2024 Revenue 5,759.6 5,711.5 Adjusted operating profit1 404.5 455.5 Operating margin1 7.0% 8.0% Adjusting items (104.0) (105.9) Operating profit 300.5 349.6 Net finance expense (60.6) (47.1) Disposal of businesses 10.2 (23.1) Profit before income tax 250.1 279.
Slide 29: Appendix 3: Acquisitions Announced Year to Date
APPENDIX 3 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 30: Appendix 4: Acquisition Growth
APPENDIX 4 Acquisition growth 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 241 25 YTD2 Number of 7 7 9 8 7 2 9 10 13 11 17 22 14 15 6 3 9 14 12 19 15 5 acquisitions Committed acquisition 302 129 162 197 123 6 126 185 277 295 211 327 184 616 183 124 445 508 322 468 883 c.120 spend (£m)
Slide 31: Appendix 5: Focus on Higher Margin Sectors
APPENDIX 5 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 32: Appendix 6: Revenue by Customer Market
APPENDIX 6 Revenue by customer market in H1 2025 Safety Foodservice Personal protection and safety equipment, including 15.3% 30.8% Non-food consumables, including food packaging, gloves, boots, hard hats, ear and eye protection and disposable tableware, guest amenities, catering other workwear, as
Slide 33: Appendix 7: Sector Performance
APPENDIX 7 Sector performance Safety Cleaning & Hygiene Healthcare Grocery1 Foodservice Retail Revenue opportunity in the medium term Sector commentary – Slight organic growth in safety driven by strong growth in Latin – Organic revenue – Revenue mix increase driven by the inclusion of America; alth
Slide 34: 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 period ended 30 June 2025. For the purposes of this disclaimer, ‘Presentation’ shall mean this document, the oral presentation of the sli