Bunzl plc (BNZL) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and thank you for attending Bonsall's 2025 Full Year Results presentation. I appreciate you joining us today. I will start by summarizing our 2025 results and will provide an update on the actions we have taken to improve performance. Following this, Richard Howes, our CFO, will take you through our financial results, capital allocation and outlook for 2026. After that, I will return to discuss how we are positioning the Group for an improved performance and continued long-term growth. 2025 was a challenging year. We were impacted by issues related to a significant organizational change in our largest business, which has been amplified by increasing end-market weakness. This led to a meaningful drop in the Group's adjusted operating profit over the year. We took decisive actions to improve performance and in the second half delivered a moderated margin decline and a return to underlying revenue growth. While end markets remain uncertain, we are reiterating the 2026 guidance we set out in December and continue to focus on delivering the things we can control. In 2026, we anticipate further underlying revenue growth and expect a more stable adjusted operating profit. We expect this to be a foundation for future organic profit growth. There also continues to be a significant consolidation opportunity within our markets. We are disciplined and with an active pipeline expect growth from acquisitions to provide strong upside to future profits as it has done historically. I also want to reiterate my confidence in the Bonsall model and its strong fundamentals such as high cash generation. We operate in attractive end markets and I remain very confident in the Group's medium-term growth opportunity. Revenue grew by 3% at constant exchange rates, driven by acquisi...