CPG Compass Group Plc

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. 

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 million² and operating profit by $36 million².

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 growth³ 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:

Financial calendar

Enquiries

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.