REG - Compass Group PLC - AGM and Q1 Trading Update

CompassAnnouncement

08/02/2024 07:15

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RNS Number : 3991C  Compass Group PLC  08 February 2024

 

   Legal Entity Identifier (LEI) No. 2138008M6MH9OZ6U2T68

 

 

 

 

 

AGM and Q1 Trading Update

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8 February 2024 - Compass Group PLC, a global leader in food services, today
announces trading results for the first quarter ended 31 December 2023. The
statement is being issued ahead of the Company's Annual General Meeting which
will be held at 12 noon today at Twickenham RFU Stadium.

 

Strong start to the year.

Strategic acquisitions to unlock further growth opportunities.

 

 Organic revenue growth(1)    Q1 2024
 North America                11.3%
 Europe                       13.0%
 Rest of World                11.8%
 Group                        11.7%

 

 

 

 

The Group's organic revenue for the three months to 31 December 2023 increased
by 11.7%(1) with strong growth across all regions.  Like for like volume was
better than we anticipated, especially in B&I, with all other growth
drivers in line with our expectations when we reported the full year results.

 

As we focus on the significant structural growth opportunities in our core
markets, we have acquired exciting new businesses and continued to reshape our
portfolio. Net acquisition expenditure in the first quarter was $352m, of
which most related to the completion of HOFMANNs in Germany. In January 2024,
we agreed to acquire CH&CO in the UK(2) for an initial enterprise value of
c.$600 million, with annual revenues of c.$570m, and dispose of our small
operations in China.

 

On 30 January 2024, the Group issued a €750m sustainable bond, maturing in
February 2031, the primary purpose of which is to refinance its existing
€750m bond maturing in July 2024. As at 7 February 2024, the Group had
completed c.$100m of its share buyback programme of up to $500m as announced
at the full year results in November 2023.

 

 

 

 

 

 

 

 

 

 

Dominic Blakemore, Group Chief Executive, said:

 

"We've had a strong start to the year with sustained balanced growth across
all regions. Outsourcing trends and volumes were strong despite continued
inflationary pressures and some macroeconomic uncertainty.

 

The Group's good cash generation and balance sheet gives us the flexibility to
invest in capex, driving organic growth, and acquire high quality businesses,
unlocking further growth and enhancing shareholder returns.

 

Our 2024 guidance remains unchanged. Underlying operating profit growth is
expected to be towards 13%3 delivered through high single-digit organic
revenue growth and ongoing margin progression."

 

Conference call

There will be a live Q&A session for analysts and investors at 8.00am.
Please connect to the call at least 10 minutes prior to the start time by
dialling:

 UK Number:              +44 (0) 33 0551 0200
 UK Toll-Free Number:    +44 (0) 808 109 0700
 US Number:              +1 786 697 3501
 US Toll-Free Number:    +1 866 580 3963
 Please reference COMPASS

 

 

Financial calendar

 

 Payment date for 2023 final dividend  29 Feb 2024
 Half year results                     15 May 2024
 Q3 trading Update                     23 July 2024
 Full year results                     26 Nov 2024

 

Enquiries

 

 Investors  Agatha Donnelly, Helen Javanshiri, Simon Bielecki  +44 1932 573 000
 Press      Tim Danaher, Brunswick                             +44 207 404 5959
 Website    www.compass-group.com (http://www.compass-group.com)

( )

(1) Year on year change.

(2) Subject to regulatory approval.

(3) On a constant-currency basis, including completed disposals, exits and
acquisitions in 2023 and to date in 2024.  Excludes any impact from the
proposed acquisition of CH&CO.

 

 

Forward-looking statements

Certain information included in this announcement is forward looking and
involves risks, assumptions and uncertainties that could cause actual results
to differ materially from those expressed or implied by forward-looking
statements. Forward-looking statements cover all matters which are not
historical facts and include, without limitation, the direct and indirect
future impacts and implications of public health crises such as the
coronavirus COVID-19 on the economy, nationally and internationally, and on
the Group, its operations and prospects; risks associated with changes in
environmental scenarios and related regulations including (without limitation)
the evolution and development of the global transition to a low carbon economy
(including increasing societal and investor expectations);  disruptions and
inefficiencies in supply chains (such as resulting from the wars in Ukraine
and the Middle East); future domestic and global political, economic and
business conditions (such as inflation or the UK's exit from the EU);
projections relating to results of operations and financial conditions and the
Company's plans and objectives for future operations, including, without
limitation, discussions of expected future revenues, financing plans and
expected expenditures and divestments; risks associated with changes in
economic conditions, levels of economic growth and the strength of the food
and support services markets in the jurisdictions in which the Group operates;
fluctuations in food and other product costs and labour costs; prices and
changes in exchange and interest rates; and the impacts of technological
advancements. Forward-looking statements can be identified by the use of
forward-looking terminology, including terms such as 'believes', 'estimates',
'anticipates', 'expects', 'forecasts', 'intends', 'plans', 'projects', 'goal',
'target', 'aim', 'may', 'will', 'would', 'could' or 'should' or, in each case,
their negative or other variations or comparable terminology.

Forward-looking statements in this announcement are not guarantees of future
performance. All forward-looking statements in this announcement  are based
upon information known to the Company on the date of this announcement .
Accordingly, no assurance can be given that any particular expectation will be
met and readers are cautioned not to place undue reliance on forward-looking
statements when making their investment decisions. Additionally,
forward-looking statements regarding past trends or activities should not be
taken as a representation or warranty that such trends or activities will
continue in the future. Other than in accordance with its legal or regulatory
obligations (including under the UK Listing Rules and the Disclosure Guidance
and Transparency Rules of the Financial Conduct Authority), the Company
undertakes no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.
Nothing in this announcement  shall exclude any liability under applicable
laws that cannot be excluded in accordance with such laws.

 

 

 

 

 

 

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