Bunzl Plc · LSE:BNZL
Bunzl — H1 2005 Earnings Presentation
23 slides from Bunzl's earnings presentation, 2005
Slide 1: Interim Results 2005
Interim Results 2005
Slide 2: Bunzl is now a focused, international distribution and outsourcing Group
Bunzl is now a focused, international distribution and outsourcing Group
Slide 3: Income Statement (£m)
Income Statement (£m) June 05 June 04 Growth (%) Continuing operations Existing 1,351.0 1,121.3 20 Acquisitions 15.3 Total revenue 1,366.3 1,121.3 22 Existing 91.1 72.0 27 Acquisitions 0.7 Operating profit pre amortisation 91.8 72.0 28
Slide 4: Income Statement (£m)
Income Statement (£m) June 05 June 04 Growth (%) Operating profit pre amortisation 91.8 72.0 28 Net finance cost (4.0) (0.4) Profit before tax and amortisation 87.8 71.6 23 Intangible amortisation ( 7.8) (1.8) Income tax (26.1) (23.4) Profit from continuing ops 53.9 46.4 16 Earnings per share 16.0p
Slide 5: Discontinued Operations (£m)
Discontinued Operations (£m) -explanatory note June 05 (5 months) Operating profit 25.8 Intangible amortisation (0.4) Net finance cost (1.4) Demerger costs (17.3) Income tax (2.5) Profit 4.2
Slide 6: Earnings and Dividends (p)
Earnings and Dividends (p) June 05 June 04 Growth (%) Continuing Operations No of shares (m) 336.0 345.3 Earnings per share 16.0 13.4 19 Adjusted earnings per share 17.8 13.8 29 Dividend per share 4.9 4.15 18 • Filtrona also to pay dividend for six months to 30.6.05
Slide 7: Balance Sheet (£m)
Balance Sheet (£m) June 05 June 04 Dec 04 Intangibles 581.8 552.4 623.7 Tangibles 64.2 200.4 218.4 Working capital 233.7 266.2 285.3 Other liabilities (152.6) (156.6) (164.2) Net assets excluding pensions 727.1 862.4 963.2 Pension liabilities (53.2) (53.9) (70.5) 673.9 808.5 892.7 Equity 388.3 499.4
Slide 8: Cash Flow – Key Extracts (£m)
Cash Flow – Key Extracts (£m) June 05 June 04 Continuing operations 73.6 71.3 Discontinued operations 16.1 28.3 Net cash flow 55.7 71.5 Working capital – cont. ops (18.3) 2.5 Net capex – cont. ops 2.5 2.0 Purchase of businesses (22.7) (191.4) Demerger of business 115.4
Slide 9: By Business Area
By Business Area Continuing operations H1 2005 Revenue Operating profit* 21% 22% 55% 53% 24% 25% North America Continental Europe & Australasia UK & Ireland * Before intangible amortisation and corporate
Slide 10: North America
North America June 05 June 04 Growth (%) Revenue (£m) 753.2 673.7 12 Operating profit* (£m) 52.5 49.3 6 Margin (%) 7.0 7.3 Return on average capital (%) 73.6 81.2 * Before intangible amortisation
Slide 11: North America
North America • Dollar sales rose 15% - underlying 5% - prices remain firm • Fastest growth in convenience stores - TSN, growing post acquisition • Redistribution also strongly ahead - Weil, Temo, organic • Processor continuing organic development • Supermarket positive development - slower than our
Slide 12: North America
North America • Dollar profits rose 10% - acquisitions in Q4 2004 lower margin than average - some continued margin pressure esp. in supermarkets • Operating costs closely controlled - despite fuel and freight cost increases - while improving service to customers • Global sourcing continuing to incr
Slide 13: UK & Ireland
UK & Ireland June 05 June 04 Growth (%) Revenue (£m) 326.1 307.1 6 Operating profit* (£m) 24.8 22.1 12 Margin (%) 7.6 7.2 Return on average capital (%) 65.5 53.5 * Before intangible amortisation
Slide 14: UK & Ireland
UK & Ireland • Strong sales growth in horeca - especially in equipment - also in supplies • Good growth also in retail and healthcare - new business • Underlying growth in cleaning and safety - branch integration reduced sales • Vending well ahead - new contracts
Slide 15: UK & Ireland
UK & Ireland • Profits ahead in all areas - overall more than sales • European and global scale impacting - position with suppliers - operating efficiencies • Operating costs controlled
Slide 16: Continental Europe & Australasia
Continental Europe & Australasia June 05 June 04 Growth (%) Revenue (£m) 287.0 140.5 104 Operating profit* (£m) 22.1 7.2 207 Margin (%) 7.7 5.1 Return on average capital (%) 50.9 42.8 * Before intangible amortisation
Slide 17: Continental Europe & Australasia
Continental Europe & Australasia • Sales well ahead in all countries - acquisitions and organic • Acquisitions major impact - France - Netherlands - Hungary - Australasia • Existing business growth also - Denmark - Germany - Netherlands - Australasia
Slide 18: Continental Europe & Australasia
Continental Europe & Australasia • Profit growth also in each country • Extensive European reach affecting - customers - suppliers • Overall scale impacting - suppliers - operating efficiencies
Slide 19: Strategy
Strategy • Continue to develop well positioned international businesses - competitive advantage - organic growth potential - leverage our global position • Build on our strengths by developing organically and by acquisition - improving the quality and reach of the business - further extending and al
Slide 20: Acquisitions
Acquisitions • Four acquisitions announced since January - Gelpa - Tecep - Sanicare - SOFCO • Total annual sales c.£175 million • Total cost £78 million • Closely following our strategy
Slide 21: Prospects – North America
Prospects – North America • Organic growth to continue with prices remaining firm • Momentum in acquisition activity to continue - consolidate industry - strengthen in growing sectors • Recent lower margin acquisitions to improve • But some overall margin pressure remains - especially in supermarket
Slide 22: Prospects – Europe
Prospects – Europe • Organic growth to continue in UK & Ireland and Continental Europe - new contract wins • Macroeconomic conditions may dampen organic prospects in some parts of Europe but - increasing presence in Central Europe • Acquisition activity to - extend geographic coverage - deepen parti
Slide 23: Prospects
Prospects • Current exchange rates indicate overall currency translation neutrality in 2005 • Our strong competitive position in international markets and our ability to add to organic growth with continuing acquisition activity give us confidence that the Group will continue to develop successfully