Compass Group PLC, a global leader in foodservices, reported financial results for the first quarter ending December 31, 2023.
The Group’s organic revenue for the three months to December 31, 2023, increased by 11.7% with strong growth across all regions. Like-for-like volume was better than anticipated, especially in B&I, with all other growth drivers in line with expectations when the company reported the full-year results.
Net acquisition expenditure in the first quarter was $352 million, of which most related to the completion of Hofmann in Germany. In January 2024, Compass Group agreed to acquire CH&CO in the U.K. for an initial enterprise value of $600 million, with annual revenues of $570 million. Compass Group also disposed of its small operations in China.
Dominic Blakemore, group chief executive, said in the announcement: “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% delivered through high single-digit organic revenue growth and ongoing margin progression.”
