REG - Compass Group PLC - Trading Statement

CompassAnnouncement

06/02/2025 07:00

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RNS Number : 0721W  Compass Group PLC  06 February 2025

   Legal Entity Identifier (LEI) No. 2138008M6MH9OZ6U2T68

 

 

6 February 2025 - Compass Group PLC, a global leader in food services, today
announces trading results for the first quarter ended 31 December 2024. The
statement is being issued ahead of the Company's Annual General Meeting which
will be held at 12 noon today at Allianz Stadium (formerly Twickenham
Stadium).

 

Strong start to the year - continued growth momentum

The Group delivered strong organic revenue growth of 9.2% in the first
quarter.  All regions and sectors performed well, with positive outsourcing
trends continuing to underpin our growth momentum.  Organic growth drivers
were in line with our expectations, with net new business supported by strong
client retention, and pricing and volumes trending as anticipated.

 

 Organic revenue growth(1)  Group  North America  Europe  Rest of

                                                          World
 Q1 2025                    9.2%   9.7%           8.4%    7.9%

 

We continue to invest in attractive growth opportunities which further enhance
our sectorisation and capabilities to unlock new market opportunities.

 

The Group's expenditure on M&A for the year to date is c.$1.0bn, the
majority relating to Dupont Restauration (France) and 4Service (Norway), which
completed in January, alongside the disposals of our operations in Chile and
Kazakhstan.

 

Currency

 

If current spot rates were to continue for the remainder of the year, foreign
exchange translation would negatively impact 2024 revenue by $558 million(2)
and operating profit by $36 million(2).

 

Summary and guidance

 

We are pleased with the strong start to the year. The Group delivered good
growth across all regions and sectors, supported by continued strong client
retention.

 

We are an even more focused business and are leveraging investments in capex
and M&A to support future growth, as we maintain our strong track record
of delivering long-term, compounding shareholder returns.

 

Our 2025 guidance remains unchanged.  We expect to deliver high single digit
underlying operating profit growth(3) with organic revenue growth above 7.5%
and ongoing margin progression.

 

(1) Year on year change.

(2) Based on spot rates as of 31(st) January 2025.

(3) On a constant-currency basis, including announced acquisitions, disposals
and exits in 2024 and to date in 2025.

Change to segmental reporting post portfolio reshaping

 

Our Rest of World region now accounts for c.5% of the Group's revenue on a pro
forma basis. As a result, the Group's internal management reporting structure
has been changed to combine Rest of World with Europe to form a new
International region.

 

From our Half Year results in May 2025 we will therefore report regional
results for North America and International. Restated financial information
will be provided in March.

 

Conference call

There will be a live Q&A session for sell-side analysts 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 final dividend  27 February 2025

 Half year results                     14 May 2025
 Q3 trading update                     22 July 2025

 Full year results                     25 November 2025

 

Enquiries

 

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

Simon Bielecki

 Press      Amy Shields, Compass Group                 +44 1932 573 000

            Tim Danaher, Brunswick                     +44 207 404 5959

 Website    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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