Compass operating profit up 16.4% to $3bn
In the period Compass acquired, or agreed to acquire, businesses in Europe including Hofmanns, CH&CO, Dupont Restauration and 4Service AS
Compass catering has announced that its operating profit has risen 16.4% to $3bn (£2.38bn) for the year ended 30 September 2024.
Alongside this, the company’s revenues rose 10.6% to $42.2bn (£33.5bn) compared with $38.1bn (£30.2bn) in the previous year.
This was accompanied by a net new business growth of 4.2%, which accelerated in the second half of the year.
For 2025, the company expects high single-digit underlying operating profit growth driven by organic revenue growth above 7.5% and ongoing margin progression.
Longer term, it is confident in sustaining mid-to-high single-digit organic revenue growth, ongoing margin progression and profit growth ahead of revenue growth.
In the period Compass acquired, or agreed to acquire, businesses in Europe including Hofmanns, CH&CO, Dupont Restauration and 4Service AS.
Dominic Blakemore, Group chief executive, said: “2024 has been a year of strong operational and financial performance, with net new business growth accelerating in the second half as expected. The business continues to successfully capitalise on the dynamic market trends, using its proven competitive advantages to drive higher revenue and profit growth.
“We have exited, or agreed to exit, nine non-core countries, further improving the quality of our portfolio and enabling us to better focus on our core markets with the greatest growth opportunities. To support this growth, we’re investing in capex to drive net new business and are currently prioritising strategic acquisitions to further enhance our unique sectorised approach to clients. We have a proven track record of successful M&A in North America and are using that blueprint to unlock growth in other regions.”
He added: “The integration of recent high-quality acquisitions in Europe is progressing well, and we’re excited by the capabilities they bring to the Group. In 2025, we expect high single-digit underlying operating profit growth, driven by organic revenue growth above 7.5% and ongoing margin progression.
“Longer term, we are confident in sustaining mid-to-high single-digit organic revenue growth with ongoing margin progression, leading to profit growth ahead of revenue growth. Our priority is to invest in the business through capex and M&A to support future growth, with surplus capital being returned to shareholders as we maintain our strong track record of delivering long-term, compounding shareholder returns.”
