Bunzl : Half yearly financial report for six months ended 30 June 2020

Bunzl plc, the specialist international distribution and services Group, today publishes its half yearly financial report for the six months ended 30 June 2020.

Financial results	H1 20	H1 19	Growth as reported	Growth at constant exchange
Revenue	£4,846.3m	£4,528.4m	7.0%	6.7%
Adjusted operating profit*	£340.8m	£302.7m	12.6%	13.0%
Adjusted profit before income tax*	£306.8m	£264.2m	16.1%	16.6%
Adjusted earnings per share*	70.1p	60.4p	16.1%	16.4%
Interim dividend	15.8p	15.5p	1.9%
Additional 2019 interim dividend	35.8p
Statutory results
Operating profit	£279.4m	£239.0m	16.9%
Profit before income tax	£245.4m	£200.5m	22.4%
Basic earnings per share	55.6p	46.5p	19.6%

Highlights include:

• Strong and resilient performance despite Covid-19 challenges with revenue up 7.0%, 6.7% at constant exchange rates, and double digit increases in adjusted operating profit* and adjusted earnings per share*
• Adjusted profit before income tax* up 16.6% at constant exchange rates to £306.8 million
• Operating margin* 7.0%, up 30 basis points on a reported basis and 40 basis points at constant exchange rates
• Return on average operating capital* and return on invested capital* increased to 39.7% and 14.4% respectively
• Continued strong cash conversion* of 112% with net debt to EBITDA only 1.6x (1.9x at end of 2019)
• 27 year track record of dividend growth continues with the reinstatement of the 2019 final dividend of 35.8p per share as an additional interim dividend for 2019 and interim dividend for 2020 up 1.9% to 15.8p per share
• Acquisition activity has resumed with the proposed acquisition of MCR Safety and Abco Kovex announced today and a number of ongoing discussions taking place with a promising pipeline of potential opportunities

Commenting on today's results, Frank van Zanten, Chief Executive Officer of Bunzl, said:

'Despite the unprecedented challenges experienced as a result of the Covid-19 pandemic during the first half of the year, these results have once again demonstrated the strength of our customer proposition and supply chain and the resilience of our business model and consistent and proven strategy. Throughout this period, a key priority has been the continued safety and wellbeing of people connected with our business including Bunzl colleagues, customers and suppliers. I have been greatly impressed by our tireless, dedicated and hardworking colleagues around the world as they have had to adapt their usual working practices to respond to the unprecedented demands placed on our business.

Looking forward, although there remains considerable uncertainty, we expect to face challenging trading conditions during the second half of the year. However the fundamental aspects of our business model remain attractive with the Group's strong cash generation allowing us to maintain Bunzl's long track record of dividend growth and continue our compounding strategy of consolidating the Group's fragmented markets through focused acquisitions.'

* Alternative performance measure (see Note 2).

Enquiries:

Bunzl plc	Tulchan
Frank van Zanten, Chief Executive Officer	David Allchurch
Richard Howes, Chief Financial Officer	Martin Robinson
Tel: [phone]	Tel: [phone]

Download the half yearly financial report for six months ended 30 June 2020 (PDF 766KB).

Note:

A live webcast of today's presentation to analysts will be available on the Company's website at www.bunzl.com commencing at 9.30 am.