The parent company of Co. Armagh-based hospitality sector supplier Bunzl Rafferty Hospitality, Bunzl plc, has released its annual results for the year that ended on December 31, 2020, which reveal that the company's pre-tax profit increased by 22.6% year-on-year to £555.7 million during while its revenue rose by 8.4% to just over £10.1 billion.
Additionally, Bunzl's operating profit increased by 17.1% year-on-year last year to £618.5 million, its basic earnings per share increased by 22.9% to 128.8 pence, its dividend increased by 5.5% to 54.1 pence, its committed acquisition spend for the year amounted to £445 million, its profits in the Americas increased by 1%, its continental Europe revenue increased by 15.1% and its organic revenue in Ireland and the UK increased by 2.6%.
CEO Statement
Bunzl CEO Frank van Zanten stated, "The past year has presented unparalleled challenges and I would like to express my sincere thanks to the almost 20,000 members of the Bunzl family for their extraordinary hard work and dedication which has ensured we have consistently delivered for our customers. While our historic investment in our supply chains and digital technology was an asset during 2020, it is ultimately our people that have driven our performance.
"The pandemic has served to highlight the vital role that Bunzl plays in ensuring supplies of essential products as well as the benefits of our diversification. As a result of our extensive supply chains and our Asia sourcing and auditing operation, we were able to quickly source and deliver significant quantities of quality assured COVID-19-related products, such as gloves and masks. Consequently, we were able to offset the negative impact that restrictions had on many of our customers' businesses, particularly in the foodservice and retail sectors. I am very proud of the role we have played in serving and protecting front line heroes.
"Overall in 2021 we expect robust revenue growth over the prior year at constant exchange rates, after excluding larger COVID-19 related orders which we do not expect to repeat. We anticipate that the recovery in sales of other products, as restrictions ease, will broadly offset the decline of smaller COVID-19 related orders, with recent acquisitions making an increasing contribution to the group's performance. It is part of our proven and consistent strategy to use our strong balance sheet and cash flows to consolidate the fragmented markets we operate in. We committed £445 million to acquisitions in 2020, have announced three further acquisitions today and have an active pipeline supported by substantial financial headroom. Looking ahead, we also expect future growth to be supported by enhanced hygiene trends and our differentiated offering of sustainable and responsible solutions.
"Since 2004, Bunzl has delivered robust organic growth, committed £3.9 billion of cash in acquisitions and returned over £1.6 billion to shareholders in dividends. In many ways, the past year has only served to increase my confidence in the long term prospects for Bunzl."
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