Bunzl plc, the specialist international distribution and services Group, today publishes its half yearly financial report for the six months ended 30 June 2020.
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 GBP306.8 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.'
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