Bunzl has posted an adjusted operating profit of £976.1m in its latest annual results, an increase by 7.2% at constant exchange rates.

The distribution and outsourcing group also saw its revenue climb to £11.8bn in 2024, which was a 3.1% rise on the same basis.

Bunzl, which was announcing its full-year results for the 12 months to 31 December 2024, reported a record year of acquisition activity, with 13 acquisitions announced in 2024 and record annual committed spend of £883m.

The FTSE 100 group said it had continued to achieve a strong free cash flow, driven by its “highly cash generative model”, as it also announced a 32nd year of consecutive annual dividend growth, with total dividend per share increasing by 8.2%.

Bunzl CEO, Frank van Zanten, said: “We have substantial headroom for continuing to self-fund value-accretive acquisitions alongside additional returns of capital to shareholders, and our acquisition pipeline remains active.

“Bunzl has delivered significant shareholder value over an extended period, with 9% compound annual growth of adjusted earnings per share since 2004. In 2024 we extended our track record of annual dividend growth to 32 consecutive years, reflecting our resilient business model.

“Our strategy remains consistent, and I am very confident that Bunzl will continue to create resilient, sustainable, long-term value for all stakeholders.”

Bunzl, which is a supplier of disposable paper and plastic packaging supplies to a vast range of businesses and industries, also confirmed in its latest results that it would maintain its guidance for robust group revenue growth in the company’s 2025 outlook.

It also announced a commitment to allocate around £700m per year primarily towards “value-accretive acquisitions” and returns of capital, for the next three years until the end of 2027.

Senior equity analyst at Hargreaves Lansdown, Matt Britzman, commented that Bunzl’s 2024 results show a “company shaking off headwinds”.

“Prices have been falling in many of Bunzl’s markets after a period of rampant inflation and that’s been bad news for top line growth – but it might finally be at an inflection point,” Britzman added.

“Key markets are showing brighter volume trends, and pricing looks set to flip positive soon, setting the stage for a stronger core business, with own-brand gains and cost efficiencies promising sustainably higher margins despite last year’s cost pressures.

“Bunzl’s real firepower lies in its robust balance sheet and cash flow, fuelling a relentless pace of high-margin acquisitions. The pipeline for future deals is a key strength too, backing up the £700m a year acquisition pledge and locking in a 2025 outlook of robust growth and steady margins.”

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