Compass Group PLC has reported its half-year results for the six months ending 31 March 2024, showcasing a robust performance. The company achieved double-digit organic revenue growth across all regions, with a significant increase in operating profit and margin. The operating profit grew by 18.7%, driven by balanced organic revenue growth of 11.2% and a 50 basis points increase in the underlying operating margin to 7.1%. The company also saw a 15.6% increase in the interim dividend per share.
The strategic priorities of Compass Group PLC include focusing on core markets, investing in capex and strategic in-fill M&A, and nurturing talent and developing leaders to support long-term growth ambitions. The company has raised its 2024 underlying operating profit growth guidance towards 15%, with organic revenue growth expected to be around 10%.
Compass Group PLC has completed the acquisitions of HOFMANNs in Germany and CH&CO in the UK and Ireland, enhancing operational flexibility and strengthening its sectorised approach to the market. The company has also exited four countries during the period and agreed to exit Brazil, subject to regulatory approval. Additionally, half of the $500 million share buyback announced in November 2023 has been completed.
Dominic Blakemore, Group Chief Executive, expressed satisfaction with the results, highlighting the strong cash generation and the flexibility it provides to invest capital back into the business through capex and strategic in-fill M&A. He emphasized the company's focus on core markets and its strong competitive advantages, which are being replicated across all regions.
The company's management will present Compass Group's Half Year 2024 results today, with a live Q&A session for the analyst community. The financial calendar includes important dates such as the ex-dividend date for the 2024 interim dividend and the record date for the same.
Overall, Compass Group PLC's strong first-half performance and positive outlook have led to an increase in guidance for underlying operating profit growth, reflecting the company's commitment to delivering long-term, compounding shareholder returns.