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Legal Entity
Identifier (LEI)
No. 2138008M6MH9OZ6U2T68
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AGM and Q1 Trading
Update
8 February 2024 - Compass Group PLC,
a global leader in food services, today announces trading results
for the first quarter ended 31 December 2023. The statement is
being issued ahead of the Company's Annual General Meeting which
will be held at 12 noon today at Twickenham RFU Stadium.
Strong
start to the year.
Strategic
acquisitions to unlock further growth opportunities.
Organic revenue growth1
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Q1
2024
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North America
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11.3%
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Europe
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13.0%
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Rest of World
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11.8%
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Group
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11.7%
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The Group's
organic revenue for the three months to 31 December 2023 increased
by 11.7%1 with strong growth across all regions.
Like for like volume was better than we anticipated, especially in
B&I, with all other growth drivers in line with our
expectations when we reported the full year results.
As we focus
on the significant structural growth opportunities in our core
markets, we have acquired exciting new businesses and continued to
reshape our portfolio. Net acquisition expenditure in the first quarter
was $352m, of which most related to the completion of
HOFMANNs
in Germany. In January
2024, we agreed to acquire CH&CO in the UK2 for an initial enterprise
value of c.$600 million, with annual revenues of c.$570m, and
dispose of our small operations in China.
On 30
January 2024, the Group issued a €750m sustainable bond, maturing
in February 2031, the primary purpose of which is to refinance its
existing €750m bond maturing in July 2024. As at 7 February 2024,
the Group had completed c.$100m of its share buyback programme of
up to $500m as announced at the full year results in November
2023.
Dominic Blakemore, Group Chief Executive,
said:
"We've had a strong start to the
year with sustained balanced growth across all regions. Outsourcing
trends and volumes were strong despite continued inflationary
pressures and some macroeconomic uncertainty.
The Group's good cash generation and
balance sheet gives us the flexibility to invest in capex, driving
organic growth, and acquire high quality businesses, unlocking
further growth and enhancing shareholder returns.
Our 2024 guidance remains unchanged.
Underlying operating profit growth is expected to be towards 13%3
delivered through high single-digit organic revenue growth and
ongoing margin progression."
Conference call
There will be a live Q&A session
for analysts and investors at 8.00am. Please connect to the call at
least 10 minutes prior to the start time by
dialling:
UK Number:
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+44 (0) 33
0551 0200
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UK Toll-Free
Number:
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+44 (0) 808 109 0700
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US Number:
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+1 786 697
3501
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US Toll-Free
Number:
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+1 866 580
3963
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Please reference COMPASS
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Financial calendar
Payment date for 2023 final
dividend
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29 Feb
2024
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Half year results
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15 May
2024
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Q3 trading Update
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23 July
2024
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Full year results
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26 Nov
2024
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Enquiries
Investors
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Agatha Donnelly, Helen Javanshiri,
Simon Bielecki
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+44 1932 573 000
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Press
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Tim Danaher, Brunswick
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+44 207 404 5959
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Website
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www.compass-group.com
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1 Year on year change.
2 Subject to regulatory approval.
3 On a constant-currency basis, including completed disposals,
exits and acquisitions in 2023 and to date in 2024. Excludes
any impact from the proposed acquisition of CH&CO.
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 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.