Full Year 2024 Compass Group PLC Earnings Call Transcript
Key Points
- Compass Group PLC (CMPGF) reported a 16% increase in operating profit and 11% organic revenue growth, with margin progression to 7.1%.
- The company has exited noncore markets and continues to invest in capabilities, CapEx, and M&A to sustain higher net new business growth.
- Net new business growth accelerated to 4.8% in the second half, providing strong momentum into 2025.
- The company has a robust sales pipeline and strong retention, expecting net new business to continue in the 4% to 5% range.
- Compass Group PLC (CMPGF) is investing in high-quality acquisitions in Europe, such as Dupont Restauration in France and 4Service in Norway, to expand its portfolio and drive growth.
- Interest expenses increased to $249 million due to higher interest rates and debt, with expectations to rise to $300 million in fiscal year 2025.
- Volume growth moderated to around 2%, and pricing trended lower as the year progressed.
- The net impact of announced acquisition disposals is expected to reduce profit in fiscal year 2025 by around $30 million.
- The company faces operational complexities due to allergens, dietary requirements, and sustainability initiatives.
- There is uncertainty around volume growth, which is economically sensitive and difficult to predict.
Good morning, and welcome to our 2024 full-year results. It's been another great year of strong progress. Our operating profit increased by 16% with organic revenue growth of 11% and 30 basis points of margin progression to 7.1%.
We operate in an industry that has a significant and attractive structural runway for growth. In recent years, we've improved the quality of our portfolio by exiting noncore markets. And we've continued to invest in capability, CapEx, and M&A to sustain higher net new business growth.
Over the next few minutes, we'll tell you how our relentless focus on the core, strong competitive advantages, and ongoing investment are unlocking further growth opportunities. But first, let me hand you over to Petros.
Thanks, Dominic. Good morning, everyone. We've delivered another strong financial performance with double-digit growth across all key metrics:
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