REG - Compass Group PLC - Trading Statement

CompassAnnouncement

23/07/2024 07:00

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RNS Number : 3686X  Compass Group PLC  23 July 2024

Legal Entity Identifier (LEI) No. 2138008M6MH9OZ6U2T68

 

 

 

Another strong quarter with good growth across all regions.

 

23 July 2024 - Compass Group PLC, a global leader in food services, today
announces trading results for the third quarter ended 30 June 2024.

 

Group and regional performance

 

The Group delivered another strong quarter with organic revenue growth of
10.3%.  All regions continue to perform well, and industry trends remain
strong, providing Compass with an exciting pipeline of new business
opportunities.

 

 Organic revenue growth(1)  Q3 2024  Q3 YTD 2024
 North America              9.9%     10.6%
 Europe                     12.0%    12.2%
 Rest of World              8.5%     9.6%
 Group                      10.3%    10.9%

(1) Year on year change.

 

As expected, net new business growth accelerated in Q3, whilst pricing
moderated in line with inflation. Volumes continued to benefit from the
quality of our offer and the value gap compared to the high street.

 

Acquisitions and disposals

 

We are continuing to invest in our portfolio, as we replicate our North
America blueprint elsewhere, to support our existing capabilities, increase
operational flexibility and further strengthen our unique sectorised approach
to the market.

 

The Group's net expenditure on M&A, including CH&CO and the disposal
of our Brazilian business, which completed in May 2024, was $836 million for
the year to date.

 

Share buyback programme

 

As at 19 July 2024, the Group had completed c.$300 million of the $500 million
share buyback programme announced in November 2023, with the remainder to be
completed before the end of the calendar year.

 

Currency

 

If current spot rates were to continue for the remainder of the year, foreign
exchange translation would negatively impact 2023 revenue by $106m and
operating profit by $17m.

 

Summary and guidance

 

We are pleased with our third quarter performance. The Group delivered good
growth across all regions and benefited from improved net new business in line
with our expectations.

 

For the full year we now expect underlying operating profit growth to be above
15% on a constant-currency basis, with organic revenue growth above 10%.

 

Procurement deep dive

 

The Group will present a virtual deep dive on its competitive advantage in
procurement on 12 September 2024.

 

Conference call

 

There will be a live Q&A session for analysts and investors at 9.00am.
Please connect to the call at least 10 minutes prior to the start time by
dialling:

 

 UK Toll Number:               +44 (0) 33 0551 0200
 UK Toll-Free Number:          0808 109 0700
 New York Number:              +1 786 697 3501
 US Toll-Free Number:          866 580 3963
 Please reference COMPASS

 

Financial calendar

 

 Payment date for 2024 interim dividend  25 July 2024

 Procurement Deep Dive                   12 September 2024
 Full year results                       26 November 2024

 

Enquiries

 

 Investors  Agatha Donnelly, Helen Javanshiri,                    +44 1932 573 000

Simon Bielecki

 Press      Tim Danaher, Brunswick                                +44 207 404 5959

 Website    www.compass-group.com (http://www.compass-group.com)

( )

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 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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