Slide 1: Bunzl 2024 Full Year Results
BUNZL 2024 FULL YEAR Add RESULTS subtitle here
Slide 2: Introduction
INTRODUCTION Frank van Zanten, Chief Executive Officer
Slide 3: Strong and Resilient Growth Compounder
STRONG AND RESILIENT GROWTH COMPOUNDER A business model and strategy that delivers strong growth, high returns and resilience Consistent long-term growth High return on invested capital Highly resilient EPS growth • Group revenue CAGR (‘14-’24): c.7%, • High return on invested capital including • Lo
Slide 4: 2024 Financial Summary
2024 FINANCIAL SUMMARY Operating margin expansion supportive to strong operating profit growth Adjusted Strong growth driven by Expansion driven by Operating 7.2% 8.3% 2 operating margin expansion and acquisitions and margin1 profit1 growth revenue growth in H2 underlying margin increase Driven by a
Slide 5: 2024 Strategic Summary
2024 STRATEGIC SUMMARY Record committed spend on acquisitions; strong increase in own brand penetration Record acquisition 13 announced acquisitions across 5 sectors committed spend £883m and 9 countries, inclusive of acquisition of Nisbets and entry into Finland; active pipeline Own brand Strong in
Slide 6: Financial Results and Outlook
FINANCIAL RESULTS Richard Howes, AND OUTLOOK Chief Financial Officer
Slide 7: Revenue
REVENUE Underlying revenue improved in H2 vs H1; revenue significantly ahead of 2019 level Revenue growth1: 3.1% Revenue growth 3.1%1 12,000 £m Organic revenue change1,2: (2.0)% Total revenue vs 20191 5.1% Underlying revenue 0.4% change2 11,000 (2.4)% 1 (2.4)% Impacted by deflation and Change: +c.30
Slide 8: Income Statement
INCOME STATEMENT Strong operating profit growth, supported by operating margin expansion Adjusted operating profit1 growth vs 2023 REPORTED CONSTANT £m 2024 2023 GROWTH EXCHANGE1 7.2% 2 Revenue 11,776.4 11,797.1 (0.2)% 3.1% Adjusted operating profit1 976.1 944.2 3.4% 7.2% 56.1%2 growth vs 2019 Opera
Slide 9: Operating Costs
OPERATING COSTS Ongoing focus on operating cost efficiencies into 2025 MODERATE OPERATING COST INFLATION - 2024 Wage inflation – North America: at typical levels in 2024 – Continental Europe: remained elevated in 2024; expected to normalise in 2025 – UK & Ireland: remained elevated in 2024; expected
Slide 10: Sector Performance
SECTOR PERFORMANCE Volume growth in certain sectors offset by deflation Safety Cleaning & Hygiene Healthcare Grocery1 Foodservice Retail Revenue opportunity in the medium term 2024 revenue as % of Group total 33% 30% 37% vs 32% in 2023 vs 30% in 2023 vs 38% in 2023 Organic revenue growth2 2024 vs 20
Slide 11: North America / Continental Europe
NORTH AMERICA / CONTINENTAL EUROPE Own brand supported North America profit; Continental Europe profit decline North America1 Continental Europe1 CONSTANT CONSTANT £m 2024 2023 REPORTED EXCHANGE2 UNDERLYING2 2024 2023 REPORTED EXCHANGE2 UNDERLYING2 Revenue 6,568.1 6,973.5 (5.8)% (2.6)% (3.4)% 2,377.
Slide 12: UK & Ireland / Rest of the World
UK & IRELAND / REST OF THE WORLD Strong growth from acquisitions in UK&I; very strong margin increase in ROW UK & Ireland1 Rest of the World1 CONSTANT CONSTANT £m 2024 2023 REPORTED EXCHANGE2 UNDERLYING2 2024 2023 REPORTED EXCHANGE2 UNDERLYING2 Revenue 1,625.8 1,365.5 19.1% 19.3% (4.2)% 1,205.4 1,10
Slide 13: Cash Flow
CASH FLOW Consistent cash conversion supports compounding model Cash conversion1 over the last 10 years Cash conversion 1 £m 2024 2023 93% Operating cash flow1,2 879.5 885.3 107% 103% 102% 101% Net interest paid (excluding lease liabilities) (65.2) (53.2) 99% 97% 97% 96% 94% 93% Strong cash conversi
Slide 14: Balance Sheet
BALANCE SHEET Substantial headroom supports acquisition growth and capital returns; strong ROIC DECEMBER DECEMBER Adjusted net debt to EBITDA1 Adjusted net debt £m 2024 2023 to EBITDA1 Intangible assets 3,683.8 3,242.1 2.3x TARGET Right-of-use assets 697.6 616.3 2.1x 1.8x 2.0x 2.0x 2.0x-2.5x Propert
Slide 15: Commitment to Increase Leverage to Target by 2027
COMMITMENT TO INCREASE LEVERAGE TO TARGET BY 2027 Disciplined approach to capital allocation £883m c.£700m per annum 2024 adjusted 2024 committed allocated towards value-accretive acquisition spend acquisitions and, subject to acquisition spend, returns of capital net debt : EBITDA1 1.8x 2024 2025 2
Slide 16: Dividend Track Record
DIVIDEND TRACK RECORD Strong growth in 2024 dividend per share; continuing normalisation of dividend cover 73.9 8.2% 32 years total of consecutive dividend per annual dividend share growth increases Dividend per share Further CAGR 9.5% 2024 dividend cover normalisation of dividend cover 2.6x expecte
Slide 17: 2025 Outlook
2025 OUTLOOK Reiterating outlook provided in pre-close statement, with deflation a headwind into 2025 Robust performance expected Other aspects of FY 2025 guidance – Despite significant uncertainties Net finance expense c.£115m relating to the wider economic and geopolitical landscape we reiterate o
Slide 18: Strategy Update
STRATEGY UPDATE Frank van Zanten, Chief Executive Officer
Slide 19: Tailored Value-Added Service to Customers
TAILORED VALUE-ADDED SERVICE TO CUSTOMERS Utilising our breadth of capabilities to provide bespoke customer solutions SOURCE HIGH RETENTION – Specialists in essential goods-not- – Sourcing and category experts for-resale – Scale benefits – Global supplier relationships >20 years average length of pa
Slide 20: Successful Compounding Growth Strategy
SUCCESSFUL COMPOUNDING GROWTH STRATEGY Growth strategy which has delivered consistently, and with strong returns CONSISTENT COMPOUNDING GROWTH MODEL 10 YEAR DELIVERY: – Win new customers – Fragmented industry 2 Adjusted operating – Sell more to existing customers – Large end markets profit1 CAGR c.9
Slide 21: Driving Organic Growth: Emerging Sustainable Own Brands
DRIVING ORGANIC GROWTH: EMERGING SUSTAINABLE OWN BRANDS Offering unparalleled choice to customers Strategic own brand growth: significant expansion in our portfolio of exclusive sustainable own brands over the past two years Creating high-quality brands: driving organic growth through providing besp
Slide 22: Enhancing Operational Efficiency
ENHANCING OPERATIONAL EFFICIENCY Ongoing programme of incremental improvements across the business Utilising warehouse automation: Autonomous Mobile Robots (AMRs) Designed to improve efficiency in order fulfilment by optimising navigation, storage and Partially offsetting transportation of goods aro
Slide 23: Margin Drivers
MARGIN DRIVERS Strong increase in operating margin since 2019; 2025 margin expected in-line with 2024 OPERATING MARGIN1 PROGRESSION OPERATING MARGIN2 EXPANSION DRIVERS 8.3% Good margin management Organic contribution • Including own brand penetration and strong vs. 2019 c.50% purchasing performance
Slide 24: Record Year for Acquisition Spend
RECORD YEAR FOR ACQUISITION SPEND 13 announced acquisitions1; £883m committed spend; pipeline is active Anchor acquisitions to expand opportunities… …alongside bolt-on acquisitions in existing markets £498m • Market leader Spain Spain revenue (2023) • Extensive own brand portfolio UK&I, • Digitally-
Slide 25: Acquisitions Support Bunzl's Strategic Development
ACQUISITIONS SUPPORT BUNZL’S STRATEGIC DEVELOPMENT Strengthening our capabilities and further consolidating fragmented markets MARKET – Share gains in existing markets SECTOR – Focus towards higher value-added EXPANSION DEVELOPMENT distribution sectors INVESTOR INSIGHT – Expansion into new sectors w
Slide 26: Acquisitions Are Building an Even Stronger Bunzl
ACQUISITIONS ARE BUILDING AN EVEN STRONGER BUNZL Acquisition capabilities and financial headroom allow for multiple strategic focus areas EXAMPLE: ACQUIRING DIGITAL BUSINESSES TO BOLSTER OUR CAPABILITIES Acquired in 2015 Acquired between 2021 and 2024 • Typically faster growing higher margin busines
Slide 27: Capital Allocation and Portfolio Discipline
CAPITAL ALLOCATION AND PORTFOLIO DISCIPLINE Driver of our consistently high returns CAPITAL ALLOCATION DISCIPLINE Average annual committed spend Return on invested capital1 c.£550m 16.2% Consistently high returns, alongside significant 15.1% 15.0% 15.5% 14.8% allocation of capital to acquisitions 13
Slide 28: Strategy Supports Highly Resilient and Strong Growth
STRATEGY SUPPORTS HIGHLY RESILIENT AND STRONG GROWTH Confidence in Bunzl’s continued strong delivery 1 Strong and resilient growth compounder Operating margin1 sustainably higher than 2 levels achieved historically Significant opportunity for continued 3 growth Disciplined capital allocation support
Slide 29: Q&A: Confidence in Long-Term Growth Opportunities
Q&A Confidence in long-term growth opportunities Proven Revenue (£bn) Adjusted operating profit1 (£m) compounding 976 11.8 growth strategy c.9% 2.4 169 adjusted operating profit1 and adjusted 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Slide 30: Appendices
APPENDICES
Slide 31: 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 32: 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 33: Appendix 2: Statutory P&L
APPENDIX 2 Statutory P&L £m 2024 2023 Revenue 11,776.4 11,797.1 Adjusted operating profit1 976.1 944.2 Operating margin1 8.3% 8.0% Adjusting items (176.8) (155.1) Operating profit 799.3 789.1 Net finance expense (105.4) (90.5) Disposal of business (20.3) - Profit before income tax 673.6 698.6 Report
Slide 34: Appendix 3.1: Acquisitions Announced in 2024
APPENDIX 3.1 Acquisitions announced in 20241 • Pamark Group acquired in February • Nisbets acquired in May 2024 • Clean Spot acquired in June 2024 • Sistemas De Embalaje Anper acquired in 2024 • A leading, high quality distributor of June 2024 • A distributor of cleaning & hygiene • A leading distri
Slide 35: Appendix 3.2: Acquisitions Announced in 2024
APPENDIX 3.2 Acquisitions announced in 2024 • Cubro Group acquired in September • DBM Medical Group acquired in • Arrow County Holdings Limited acquired • C&C Group acquired in October 2024 2024 September 2024 in October 2024 • A specialist foodservice business that • The leading distributor of mobi
Slide 36: 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 24 Number of 7 7 9 8 7 2 9 10 13 11 17 22 14 15 6 3 9 14 12 19 151 acquisitions Committed acquisition 302 129 162 197 123 6 126 185 277 295 211 327 184 616 183 124 445 508 322 468 883 spend (£m) Annualised acqu
Slide 37: 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 38: Appendix 6: Revenue by Customer Market in 2024
APPENDIX 6 Revenue by customer market in 2024 Safety Foodservice Personal protection and safety equipment, including 15.8% 29.3% Non-food consumables, including food packaging, gloves, boots, hard hats, ear and eye protection and disposable tableware, guest amenities, catering other workwear, as wel
Slide 39: Appendix 7: Progress Against Our Commitments
APPENDIX 7 Progress against our commitments Better packaging solutions Responsible supply chain Investing in our people Focus on climate change We are committed to supporting our Our supply chain in Asia2 is covered by direct We are focused on engagement and diverse Our consolidation model and one-s
Slide 40: 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 2024. For the purposes of this disclaimer, ‘Presentation’ shall mean this document, the oral presentation of the s