Compass raises profit and revenue guidance amid strong HY
Additionally, its underlying profit margin increased to 7.1%, up 50bps year on year
Foodservice company Compass Group has raised its 2024 profit guidance towards 15% with organic revenue growth of 10% as the group reported an 11.2% increase in revenues to $20.9bn (£16.5bn) during H124.
The group also reported an 18.7% rise in underlying operating profit to $1.47bn (£1.16bn). Additionally, its underlying profit margin increased to 7.1%, up 50bps year on year.
Compass Group invested $693m (£546.9m) in capex (3.3% of underlying revenue) supporting growth and generating strong returns.
Moreover, it spent $373m (£294.3m) on M&A, including the acquisition of Hofmann in Germany and CH&CO in the UK and Ireland completed in April 2024.
The group also exited four countries during the period and agreed to exit Brazil subject to regulatory approval.
Dominic Blakemore, group chief executive, said: “The group has delivered a strong set of results, with balanced double-digit organic revenue growth and good underlying operating margin progression across all regions, leading to underlying operating profit growth of 19% on a constant-currency basis.
“As a result of our strong first-half performance and positive outlook, we are raising guidance for underlying operating profit growth to towards 15% for the full year. Beyond 2024, we expect to sustain mid to high single digit organic revenue growth, ongoing margin progression and profit growth ahead of revenue growth.”
Blakemore added: “We will continue to reinvest in the business to support future growth, with any surplus capital returned to shareholders, as we maintain our strong track record of delivering long-term, compounding shareholder returns.”
