The food and support services business has announced a “strong start to the year” in its trading results for the first quarter ended 31 December 2023.
The Group’s organic revenue grew by 11.7% for the three months to 31 December 2023 with strong growth across all regions:
- North America 11.3%
- Europe 13.0%
- Rest of the World 11.8%
Compass stated like for like volume was better than it anticipated, especially in B&I, with all other growth drivers in line with its expectations.
Compass added it will be focusing on strategic acquisitions to unlock further growth opportunities in its core markets. The company has acquired new businesses and says it continues to reshape its portfolio. Net acquisition expenditure in the first quarter was $352m, of which most related to the completion of HOFMANNs in Germany. In January 2024, Compass agreed to acquire CH&CO in the UK for an initial enterprise value of c.$600m, with annual revenues of c.$570m. It is also looking to dispose of its small operations in China.
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 per cent delivered through high single-digit organic revenue growth and ongoing margin progression.”
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