Half yearly financial report for six months ended 30 June 2019
Bunzl plc, the specialist international distribution and services Group, today publishes its half yearly financial report for the six months ended 30 June 2019.
Financial results | As reported under IFRS 16 H1 19 |
IAS 17Δ H1 19 |
As reported under IAS 17 H1 18 |
IAS 17Δ growth at actual exchange |
IAS 17Δ growth at constant exchange |
---|---|---|---|---|---|
Revenue | £4,528.4m | £4,528.4m | £4,343.7m | 4.3% | 1.2% |
Adjusted operating profit* | £302.7m | £291.8m | £285.0m | 2.4% | 0.3% |
Adjusted profit before income tax* | £264.2m | £264.9m | £257.9m | 2.7% | 0.8% |
Adjusted earnings per share* | 60.4p | 60.6p | 59.4p | 2.0% | 0.0% |
Interim dividend | 15.5p | 15.5p | 15.2p | 2.0% | |
Statutory results | As reported under IFRS 16 H1 19 |
As reported under IAS 17 H1 18 |
|||
Operating profit | £239.0m | £210.8m | |||
Profit before income tax | £200.5m | £197.3m | |||
Basic earnings per share | 46.5p | 45.1p |
Highlights include:
- Revenue up 4.3%, 1.2% at constant exchange rates, with underlying organic growth of 0.8%
- Operating margin* 6.7%, up 12 basis points on a reported basis; down 6 basis points at constant exchange rates on a consistent IAS 17 basis
- Adjusted profit before income tax* up 2.7% on a consistent IAS 17 basis, 0.8% at constant exchange rates
- Year to date committed acquisition spend of £98 million with active pipeline
- Return on average operating capital* 48.8% with return on invested capital* 14.7% on an IAS 17 basis
- Continued strong cash conversion* of 96%
- 26 year track record of dividend growth continues with a 2% increase in the interim dividend
Commenting on today’s results, Frank van Zanten, Chief Executive of Bunzl, said:
“Against the background of slowing macroeconomic and market conditions across the countries and sectors in which we operate, Bunzl has produced a resilient operating performance with high cash conversion and an increased dividend.
Looking forward, the Group’s expectations for 2019 remain unchanged. Despite continuing economic uncertainties, the Board believes that the combination of our strong competitive position, diversified and resilient businesses and ability to consolidate our fragmented markets will lead to further progress. We have a strong balance sheet and are in active discussions with a number of acquisition targets which we anticipate will result in additional deals during the remainder of the year.”
Δ | Following the adoption of IFRS 16 ‘Leases’ with effect from 1 January 2019, because the Group has adopted the accounting standard using the modified retrospective approach to transition and has accordingly not restated prior periods, the results for the six months ended 30 June 2019 are not directly comparable with those reported in the prior period under the previous applicable accounting standard, IAS 17 ‘Leases’. To provide meaningful comparatives, the results for the six months ended 30 June 2019 have therefore also been presented under IAS 17 with the growth rates shown on an IAS 17 basis. See Notes 2 and 3 for a reconciliation of the IAS 17 alternative performance measures to the equivalent IFRS measures. |
* | Alternative performance measure (see Note 3). |
Enquiries:
Bunzl plc | Tulchan |
Frank van Zanten, Chief Executive | David Allchurch |
Brian May, Finance Director | Martin Robinson |
Tel: +44 (0)20 7725 5000 | Tel: +44 (0)20 7353 4200 |
Half year financial report for six months ended 30 June 2019