Compass Group Regulatory News (CPG)

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.

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:

Financial calendar

Enquiries

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.