Bunzl Releases Half Yearly Financial Report for Six Months Ended 30 June 2022
Bunzl has released its financial report for the six months ended on June 30, 2022. Highlights from the period include:
- Strong revenue growth of 12.4% at constant exchange rates, driven by product cost inflation and continued volume recovery in the base business, and growth from acquisitions
- Adjusted operating profit increase of 8.6% at constant exchange rates and rise in adjusted earnings per share of 6.9%; Reported operating profit up 7.7% and reported basic earnings per share up 4.6%
- Adjusted operating profit 41% higher at constant exchange rates compared with the first half of 2019, demonstrating the strength and resilience of the Bunzl model
- Resilient free cash flow generation, with cash conversion of 86% despite the impact of inflation and greater inventory held to support service levels to customers during supply chain disruption
- Interim dividend per share growth of 6.8% consistent with the Group’s commitment to ensuring sustainable dividend growth
- Net debt to EBITDA of 1.6 times provides substantial headroom for further acquisitions
- Six acquisitions announced year to date with a total committed spend of more than £225 million
Commenting on the results, Frank van Zanten, Chief Executive Officer of Bunzl, said:
“The strength of our first half results is testament to the dedication of our colleagues and the resilience of our value-added business model. Over the period, our teams have been agile in navigating substantial inflation and supply chain disruption, while supporting recovery in the base business and continuing to provide our customers with essential products and services that are crucial to their operations. Our good performance has also been enabled by the depth and flexibility of our global supply chains.”
To view the full press release, visit the Bunzl website.
Source: Bunzl
Bunzl Acquires Businesses in the Netherlands, Brazil, Australia and the UK
Bunzl plc, the specialist international distribution and services Group, announced that it has entered into agreements to acquire four businesses.
On 1 August, the Group completed the acquisition of Containit, a fast-growing distributor of warehouse storage solutions to the resources and defence sectors in Australia. The expansion into warehouse solutions complements Bunzl’s existing offering in the Australian safety market, further strengthening our position there. The business generated revenue in 2021 of AUD 17 million (c.£9 million).
In July, Bunzl entered into an agreement to acquire Corsul Group, a leading distributor of personal protective equipment to end users in Brazil, with a strong presence in the South of Brazil. In 2021 Corsul generated revenue of BRL 260 million (c.£35 million). Completion of the acquisition is subject to competition authority clearance.
Bunzl completed the acquisition of AFL Groep in July, a distributor of logistics and warehouse related supplies to customers in the Benelux. In 2021, AFL generated EUR 19 million (c.£16 million) of revenue. The acquisition increases Bunzl’s exposure to these attractive end markets, and its strong online capabilities enhance Bunzl’s digital presence.
In July, Bunzl also completed the acquisition of London Catering & Hygiene Solutions (“LCHS”), a distributor of catering supplies and cleaning and hygiene products in the UK, which complements our existing business, and generated £5 million of revenue in the 12 months to May 2022.
The Group has also completed the previously announced acquisition of Hygi.de, a leading and fast-growing online distributor of cleaning and hygiene products in Germany.
Commenting on the acquisitions, Frank van Zanten, Chief Executive Officer of Bunzl, said:
“I am delighted to be welcoming these four businesses to the Bunzl family. Our acquisition of Containit allows us to expand into an attractive adjacent market, whilst the acquisition of Corsul will allow Bunzl to develop its operations in the Southern Brazilian PPE market. AFL drives our continued expansion into the attractive logistics sectors in Benelux and, at the same time, increases our digital footprint. Furthermore, the acquisition of LCHS supports our UK business by growing our presence in the South of the UK.
In total we have announced six acquisitions year-to-date, with a total committed acquisition spend of more than £220 million. The Group’s strong balance sheet continues to support our compounding growth strategy, with our acquisition pipeline remaining active.”
Source: Bunzl
