REG - Compass Group PLC - Q3 Trading Update

CompassAnnouncement

Tue 07:00

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RNS Number : 9481R  Compass Group PLC  22 July 2025

 

   Legal Entity Identifier (LEI) No. 2138008M6MH9OZ6U2T68

 

 

 

 

 

 

Upgrading FY25 profit guidance due to strong organic growth and better than
expected M&A performance

Agreed to acquire Vermaat for €1.5bn

22 July 2025 - Compass Group PLC, a global leader in food services, today
announces trading results for the third quarter ended 30 June 2025.

 

Group and regional performance

 

Compass delivered another strong performance with organic revenue growth of
8.6% in the third quarter and 8.5% for the year to date. Both regions
performed well, with North America delivering strong growth across all
sectors. Net new business growth continued in the middle of our 4 - 5% target
range, supported by strong client retention of over 96%.

 

 Organic revenue growth(1)  Q3 2025  Q3 YTD 2025
 North America              9.6%     9.0%
 International              6.6%     7.6%
 Group                      8.6%     8.5%

(1) Year on year change

 

Volume growth in both regions remained positive, with North America
particularly strong as it benefited from favourable hospitality events. Growth
in International was slightly lower compared to Q2, due to mobilisation
timings. Pricing was in line with our expectations.

 

Acquisition and disposals

 

The Group's net expenditure on M&A was $1.1bn for the year to date,
largely unchanged from its position at the half year. The integration of
recent acquisitions is progressing ahead of expectations, and they are
performing well.

 

Today we have announced an agreement to acquire Vermaat Groep B.V., a leading
premium food services business in Europe, for an Enterprise Value of
approximately €1.5bn.  Further details are provided in an accompanying
stock exchange announcement.  This transaction is subject to regulatory
approval and consultation with the Vermaat Works Council.

 

Currency

 

If current spot rates were to continue for the remainder of the year, foreign
exchange translation would negatively impact 2024 revenue by $57m(1) and
operating profit by $13m(1).

(1) Based on spot rates as of 17 July 2025

 

Summary and guidance

 

We are pleased with our third quarter performance with continued strong
organic revenue growth and M&A performing better than expected.

 

As a result, we are upgrading our 2025 guidance.  We now expect constant
currency underlying operating profit growth to be towards 11%, driven by
organic revenue growth above 8% and ongoing margin progression.

 

Sectorisation deep dive

The Group will share a virtual deep dive in September 2025, relating to how it
sectorises the market, operating in distinct sectors through a unique
portfolio of brands, which is a key competitive advantage.

Conference call

There will be a live Q&A session for analysts and investors at 9.00am BST.
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  31 July 2025

 Sectorisation deep dive                 September 2025
 Full year results                        25 November 2025

 

 

Enquiries

 

 Investors  Agatha Donnelly, Simon Bielecki          +44 1932 573 000

 Press      Amy Shields                              +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 COVID-19
pandemic 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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