Bunzl has reported strong revenue growth in its UK & Ireland business, with acquisitions – particularly catering supplier Nisbets – more than offsetting underlying sales declines.
Revenue in the region rose 19.3% to £1.63 billion in 2024, largely driven by the addition of Nisbets, which was acquired in late May. Underlying revenue, however, fell by 4.2% due to price deflation and softer volumes, particularly in the safety, retail and foodservice sectors.
Despite these challenges, the UK & Ireland division delivered a significant increase in operating margin, which improved from 7.6% to 8.3%, while adjusted operating profit surged 31% to £135.1 million. Bunzl attributed this to acquisitions, strong margin management and product sourcing initiatives.
Foodservice was a key focus in 2024, with the Nisbets acquisition contributing to overall revenue growth in the category. However, the sector saw a slight decline in underlying volumes amid a tough trading environment. Bunzl noted that Nisbets faced early supply chain issues but ended the year with positive momentum, with synergy benefits expected in 2025.
Cleaning & hygiene and care saw moderate volume growth, supported by customer wins and the acquisition of Arrow County Supplies in October. The division’s sustainability-led value proposition continued to attract new business and contributed to the group’s improved margins.
The safety sector recorded a modest revenue increase, helped by the full-year contribution from 2023 acquisition EHM and new contract wins. Bunzl said investment in operational efficiency had positioned the business well to capitalise on growth opportunities in housebuilding and infrastructure projects in 2025.
Grocery sales remained stable, while the non-food retail business experienced a moderate decline due to weaker consumer demand. Bunzl’s premium non-food packaging segment – supplying the luxury fashion and jewellery markets – was particularly impacted by reduced demand from consumers in Asia and Europe.
In Ireland, revenue was slightly down as volume growth in some categories was outweighed by deflation. Bunzl highlighted improvements in warehouse management systems that led to operational efficiencies, with new retail sector contracts providing growth opportunities for 2025.
