The Bunzl Board is recommending an interim dividend of 20.1p, 10.4% higher than the prior year period, following on from the Group's 31st consecutive year of annual dividend growth in 2023. Dividend cover in 2024 is expected to reduce to around 2.65 times, with further normalisation of dividend cover in 2025 to between 2.5 and 2.6 times in order to enhance returns for shareholders.
Other financial highlights include:
Revenue declined by 0.4% at constant exchange rates; with underlying revenue trends improving in the second quarter, with further improvement in July and August
Adjusted operating profit increased by 7.4% at constant exchange rates, reported operating profit declined by 2.8%
Strong increase in operating margin from 7.4% to 8.0%
Adjusted earnings per share increased by 6.2% at constant exchange rates, reported basic earnings per share declined by 16.4%, largely due to the currency translation driven loss related to the disposal of our business in Argentina
Continued strong free cash flow driven by excellent cash conversion of 100%
Seven acquisitions announced August year-to-date, including PowerVac announced today; annual committed acquisition spend so far this year is already over £650 million
2024 outlook: adjusted operating profit guidance upgraded, driven by improved margin performance and acquisitions
Commitment to allocate c.£700 million per annum primarily towards value-accretive acquisitions and, if required, return of capital, in each of the three years ending 31 December 2027
Recognising the Group's strong balance sheet, the Board has today announced an initial £250 million share buyback that will commence with immediate effect, to be completed no later than 3 March 2025. The Board expects to announce a further share buyback at its 2024 preliminary results of c.£200 million
