REG - Compass Group PLC - Q1 Trading Statement

CompassAnnouncement

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RNS Number : 7713R  Compass Group PLC  05 February 2026

 

   Legal Entity Identifier (LEI) No. 2138008M6MH9OZ6U2T68

 

 

 

 

5 February 2026 - Compass Group PLC, a global leader in food services, reports
strong first quarter results for the period ended 31 December 2025, ahead of
the Company's AGM at 10.30am today in London.

 

Strong start to the year, Vermaat acquisition completed

Compass delivered another quarter of consistent growth and strategic progress
with organic revenue increasing by 7.3% in Q1.

 

 Q1 2026                    Group  North America  International
 Organic revenue growth(1)  7.3%   7.3%           7.1%

We delivered strong performances across both regions and all sectors, with
Sports & Leisure (S&L) and Business & Industry (B&I) remaining
our fastest‑growing areas. B&I achieved double‑digit organic growth in
North America, driven by robust first‑time outsourcing (FTO) wins and
continued expansion within the technology sector.

 

Net new business growth was within the 4-5% range, underpinned by strong
client retention above 96%. Pricing moderated as anticipated in a lower
inflation environment, while volumes continued to contribute positively to
growth.

 

Annualised new business wins totalled $4bn(2), up 10% year on year, with
nearly half generated from FTO.

 

Vermaat acquisition adds capability and talent in Europe

 

Compass completed the acquisition of Vermaat, a leading food services business
in the Netherlands, for $1.7bn in December 2025.  Vermaat strengthens
Compass' position across multiple sectors in the Netherlands, France, and
Germany with high quality food offers, strong retail expertise, and
exceptional talent. Including Vermaat, total first quarter M&A investment
was $1.9bn.

 

Compass to change LSE Trading Currency from GBP to USD

 

With effect from 1 April 2026, Compass intends to change the trading currency
of its Ordinary Shares on the London Stock Exchange (LSE) from sterling (GBP)
to US dollars (USD).  This transition aligns the Group's share price trading
currency with its reporting currency, reducing FX volatility in the share
price and simplifying the investment case for global investors.

 

The change will not affect Compass Group's FTSE index inclusion or its LSE
listing. Dividends will continue to be paid in sterling unless shareholders
elect to receive them in USD.

 

Summary and guidance

 

Compass began the year with strong momentum across all regions and sectors,
with S&L and B&I continuing to perform particularly well.

 

The strategic integration of Vermaat is now underway, providing us with
additional capabilities and talent to further drive growth, as we replicate
our proven and successful North America M&A blueprint in Europe.

 

We reaffirm 2026 guidance and continue to expect around 10% underlying
operating profit growth (constant currency), driven by:

 

·    Around 7% organic revenue growth

·    Around 2% profit growth from M&A

·    Ongoing margin progression

Dominic Blakemore, CEO of Compass Group, said:

 

"We have delivered a strong start to the year with broad based growth across
every region and sector. The momentum in our B&I segment, particularly in
North America, reflects the strength of our model and the value we continue to
deliver for clients.

 

The acquisition of Vermaat expands our capabilities in key European markets
and will further accelerate growth. With strong new business wins, disciplined
execution, and a clear strategy, we remain confident in our outlook and our
ability to drive sustainable, long-term value for shareholders."

 

Currency

 

If current spot rates were to continue for the remainder of the year, foreign
exchange translation

would positively impact 2025 revenue by $630 million(3) and operating profit
by $33 million(3).

 

Sectorisation deep dive next week

 

The Group will share a virtual deep dive on 9 February 2026 to outline its
sectorisation strategy, including further detail on Vermaat and Compass'
portfolio of brands.

 

(1) Year-on-year change

(2) Annual revenue of new business wins in the last 12 months

(3) Based on spot rates as of 30 January 2026

 

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
 US Toll Number:         +1 786 697 3501
 US Toll-Free Number:    +1 866 580 3963
 Please reference COMPASS

 

 

Financial calendar

 

        Half year results       11 May 2026

        Q3 trading update       21 July 2026

        Full year results       24 November 2026

 

Enquiries

 

 Investors  Agatha Donnelly, Simon Bielecki          +44 1932 573 000
 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 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 or changes in global trade
policies and conditions); 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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