LONDON (dpa-AFX) - Bunzl plc. (BNZL.L) reported that its profit after tax for the year ended 31 December 2018 increased to 326.5 million pounds, an increase of 25.3 million pounds, up 8% at constant exchange rates--up 5% at actual exchange rates--,due to a 28.3 million pounds increase in profit before income tax, partly offset by a 3.0 million pounds increase in the tax charge.
Earnings per basic share were 98.4 pence, up 8% at constant exchange rates or up 4% at actual exchange rates.
Profit before income tax was 424.8 million pounds, an increase of 7% or 4% at actual exchange rates.
Adjusted profit before income tax was 559.0 million pounds, up 6% or 3% at actual exchange rates due to the growth in operating profit, partly offset by an increase in the net interest charge.
Adjusted earnings per share were 129.6 pence, an increase of 12% or 9% at actual exchange rates, principally due to the increase in adjusted profit before income tax and a significantly reduced effective tax rate largely caused by the reduction in the US federal tax rate from 1 January 2018.
Group revenue increased 6% to 9.079 billion pounds from 8.581 billion pounds, due to the benefit of acquisitions, partly offset by the impact of disposals, as well as strong organic growth of 4.3% with good contributions from all business areas.
Overall currency translation movements, principally the strengthening of sterling against the US dollar, had a negative impact on the reported Group growth rates at actual exchange rates. At constant exchange rates, revenue increased by 9% and adjusted operating profit rose by 7% with the Group operating margin down 10 basis points at 6.8%. Adjusted earnings per share were up 12%.
The Board recommended a final dividend of 35.0 pence. This brings the total dividend for the year to 50.2 pence, up 9% compared to 2017.
Bunzl also announces that it has acquired a further safety business in the US. Liberty Glove & Safety, which is based in California and operates from four locations, is engaged in the sale of a full range of personal protection equipment, principally gloves, to distributors throughout the US. The majority of products supplied are own label brands. Revenue in 2018 was US$93 million.
Copyright RTT News/dpa-AFX
© 2019 AFX News
