Compass has reported results for the year ended 30 September 2012, a year in which the Group performed well, with good prospects looking ahead. Revenue increased 8% to £16.9 billion globally, with operating profit up 9% at £1.178 billion.
Overview of results
Strong top line growth and significant further efficiencies generated:
- Constant currency revenue increased by 8%; organic revenue growth of 5.4%.
- Strong performances in North America (44% of group revenue, with profit margin reaching 8%) and Fast Growing & Emerging (now 20% of group revenue), driven by good levels of net new business.
- Efficiencies reinvested to drive growth and helping to manage challenging economic conditions in Europe.
- Cost reduction plans in Europe progressing well.
Further returns to shareholders; new £400 million buyback announced for 2013:
- Another year of strong cash flow generation, which has enabled us to invest in the business and acquisitions, and reward shareholders.
- Full year dividend increased by 10% to 21.3 pence.
- On track to complete existing £500 million share buyback.
Future prospects of the Group remain encouraging:
- Positive outlook in North America and Fast Growing & Emerging, combined with action plans in Europe, underpin expectations for 2013.
- Well placed to exploit significant growth opportunities in food and support services globally and deliver further margin progression.
Richard Cousins, Group Chief Executive:
“In the longer term, we remain very positive about the opportunities to grow the business and we are well positioned to capitalise on the significant structural growth potential in both food and support services globally.”
Background information on the Compass Group
Compass Group is the world’s largest foodservice company with:
Operations in around 50 countries
Over 500,000 employees – one of the world’s 10 largest private sector employers
Over 50,000 client locations
Over 4 billion meals served annually
Over 1 billion hot drinks served every year (approximately 140 per second)
Around 1.5 billion cold drinks served every year (approximately 185 per second)
Operating in the following sectors:
Business & Industry (workplace restaurants)
Sports & Leisure (major sports and events)
Healthcare (patient, staff and visitor – public and private)
Education (state and private – schools & universities)
Defence, Offshore & Remote