Bunzl PLC, a specialist international distribution and services Group, has released its half-yearly financial report for the six months ended 30 June 2023. The company reported a revenue growth of 0.6% at constant exchange rates, with a 2.4% growth excluding the UK healthcare disposal. Adjusted operating profit increased by 2.5% at constant exchange rates, with a growth of 4.1% excluding the UK healthcare disposal. The operating margin increased from 7.3% to 7.4%. Adjusted earnings per share declined by 1.7% at constant exchange rates, while reported basic earnings per share rose 6.9%. The company also announced a 5.2% increase in the interim dividend per share, extending 30 consecutive years of annual dividend growth.
Bunzl PLC reported a free cash flow growth of 21% to £286.3 million, supported by a substantial reduction in inventory. The company also announced 12 acquisitions year-to-date, with a total committed spend of more than £350 million. The net debt to EBITDA ratio was 1.1 times, providing substantial headroom for acquisitions. The company's return on invested capital was 14.9%, compared to 13.6% at the end of 2019, prior to the pandemic.
Looking ahead, Bunzl PLC upgraded its 2023 adjusted operating profit guidance, driven by a meaningful increase in operating margin expectations. Frank van Zanten, Chief Executive Officer of Bunzl, expressed confidence in the company's medium-term growth opportunities, which are underpinned by its differentiated value-added proposition and a strong balance sheet to support significant consolidation opportunities.