BUNZL PLC, a specialist international distribution and services Group, has released its annual results for the year ended 31 December 2023. The company reported a record operating margin and a successful year for acquisitions. Despite a 1.9% decline in revenue at constant exchange rates, the revenue remains significantly ahead of 2019. Adjusted operating profit increased by 6.2% at constant exchange rates, with growth of 7.6% excluding the UK healthcare disposal. The reported operating profit rose by 12.5%, and the operating margin increased from 7.4% to 8.0%.
The company also saw a 3.7% increase in adjusted earnings per share at constant exchange rates, with reported basic earnings per share increasing by 10.9%. Bunzl achieved its 31st consecutive year of annual dividend growth, with a total dividend per share growth of 8.9%. The company agreed on 19 acquisitions in 2023, with a committed spend of £468 million, and announced two additional acquisitions. Bunzl ended 2023 with a net debt to EBITDA of 1.1 times, providing substantial capacity to self-fund further acquisitions.
Frank van Zanten, Chief Executive Officer of Bunzl, expressed pride in the Group's performance during 2023, highlighting the record operating margin of 8.0% and the strong profit performance. He emphasized the company's acquisition strategy, with a total committed acquisition spend of £1.7 billion over the last four years. Van Zanten also mentioned the company's strong financial position, which provides a stronger platform to drive market share and create long-term sustainable value.
The company's revenue was resilient in 2023, with total revenue declining by 0.4% at constant exchange rates and excluding the UK healthcare disposal. Group revenue is approximately 28% higher than in 2019. The base business was impacted by volume loss in the North America foodservice redistribution business due to deflationary pressure, post-pandemic normalization trends, and reduced inflation benefit. However, the revenue was supported by 2.5% growth from the incremental impact of acquisitions.
Bunzl's strategic progress in 2023 included good margin management, 19 acquisitions across multiple sectors and geographies, and the increasing penetration of own brands, contributing to the record operating margin.