Nov 26, 2024, 10:33 PM
Nov 26, 2024, 9:45 AM

Compass Group reports record profits as workers return to offices

Highlights
  • Compass Group's underlying operating profits rose by 16.4 percent to $3 billion in the year ending September.
  • The firm announced a final dividend of 39.1 cents per share, resulting in a 13.7 percent increase compared to the previous year.
  • Despite strong growth, Compass anticipates more modest profits in 2025 due to ongoing market challenges.
Story

In the United Kingdom, Compass Group has reported a significant increase in profits for the year ending September. The world's largest catering business revealed that its underlying operating profits surged by 16.4 percent to reach $3 billion, driven by a resurgence in employee attendance at workplaces as remote work decreased. Growth was observed across all regions, particularly in North America where revenues rose by 10.9 percent to $28.6 billion. European sales also significantly improved, thanks to increased spending in sectors such as education and sports. The CEO of Compass Group, Dominic Blakemore, noted that the company effectively capitalized on market trends during a year marked by strong operational and financial performance. The firm has shown a commitment to rewarding shareholders with a substantial dividend increase, proposing a final dividend of 39.1 cents per share, culminating in a total of 59.1 cents for the year, representing a 13.7 percent rise from the previous year. Despite this positive outlook, the company anticipates more modest growth in the following year, expecting underlying operating profits to increase only by a high single-digit percentage. Factors contributing to this projection include ongoing margin progression and organic revenue growth projected at over 7.5 percent. The market's reaction to this news has been mixed, with Compass Group's shares experiencing a decline despite a year-to-date increase of almost 20 percent. Compounding these dynamics, the company has adjusted its global presence, withdrawing from five countries, including China and Brazil, while also making two strategic acquisitions in Europe. This shift reflects Compass Group's ongoing effort to enhance its market positioning amidst changing consumer behaviors and recovery trends from the pandemic.

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