Bunzl PLC (LSE:BNZL) shares buckled 5.5% to 3,122p after it reported full-year despite increasing its dividend for the 31st consecutive year and completing 19 acquisitions in the year, with two more announced today.
The shares had hit an all-time high of 3,306p on Friday.
Results today showed operating profit in 2023 climbed 6.2% to £944.2 million on revenue down 1.9% to £11.8 billion.
Revenue was lower due to reduced benefits from inflation, lower volumes in the North American food-service redistribution business and some post-pandemic related normalisation trends.
The acquisitions agreed last year took total committed acquisition spend to £1.7 billion over the last four years.
The first two additions for 2024 are Nisbets, an omnichannel distributor of catering equipment and consumables that operates in the UK and Ireland, Northern Europe, and Australasia; and Pamark Group, an "anchor" acquisition in Finland, bringing the total number of countries in which the group operates to 33.
An 8.9% increase in the dividend to 68.3p was declared.
Analysts at Stifel said: "We view this as a good update from Bunzl and see the group as well positioned to continue to consolidate its fragmented end-markets with further opportunity to expand margins. In the near term, we see scope for the softer macroeconomic backdrop, potential price moderation and an FX translational headwind to put some downward pressure on organic revenue and EPS progression."