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Compass Group (CPG) investor relations material

Compass Group Q3 2025 TU earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 TU earnings summary22 Jul, 2025

Executive summary

  • Delivered strong Q3 with 8.6% organic revenue growth, led by North America across all sectors, and upgraded FY25 profit guidance following better than expected M&A performance.

  • Net new business remained within 4%-5% range, supported by client retention above 96%.

  • Announced agreement to acquire Vermaat, a premium European food service business, for €1.5bn, pending regulatory approval, expected to accelerate sectorization and expansion in Europe.

  • Upgraded full-year guidance for constant currency underlying operating profit growth towards 11%.

Financial highlights

  • Organic revenue growth of 8.6% in Q3 year-over-year and 8.5% year-to-date.

  • North America achieved 9.6% organic revenue growth in Q3; International at 6.6%.

  • Underlying operating profit growth guidance raised to ~11% for the full year.

  • Last 12 months new business signings at $3.7 billion, up 6-7% year-over-year.

  • Q3 new business wins included 48% from first-time outsourcing.

Outlook and guidance

  • Full-year organic revenue growth expected above 8%, with ongoing margin progression and better-than-expected M&A performance underpinning profit upgrade.

  • Q4 expected to see moderation in North America volumes and improved international run rates.

  • No share buybacks expected until at least 2027 due to leverage targets.

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Frequently asked questions

British Food Service Group

Compass Group is a British food service and support services company with multinational operations. The company provides catering services to a number of sectors including healthcare, education, business, sports, and military. Its services extend beyond food catering to include facility management and other support services, primarily aimed at the educational sector. The company is headquartered in Chertsey, England, and its shares are listed on the LSE.

Aiding the War Effort

The origins of Compass Group can be traced back to 1941 in the United Kingdom, under the name Factory Canteens Ltd. This initial venture was focused on providing catering services to factories during the war. When peace was achieved in Europe, the company continued to provide catering services across the country. In the following decades, it pursued a strategy of growth through acquisitions, extending its reach across various markets globally. The early 2000s saw Compass Group undergoing significant corporate restructuring. This included divesting non-core businesses to focus more intensely on catering and related services.

Food services

Compass Group provides food services across various sectors, providing all-encompassing solutions for clients looking to feed larger groups of people. The company delivers daily meal solutions for office workers and supplies schools and universities with catering. Other client groups include event organizers, hospitals and healthcare facilities, correctional facilities, and similar institutions. Some companies operating in the same sector are Sodexo and Aramark.

Other Services

Besides its primary focus on food services and catering, Compass Group offers a range of additional services that complement its core operations. These include facilities management, support services in the form of receptionists and other key operational roles for businesses, vending services, and event planning. All of these services can be combined with its catering to offer a comprehensive solution for its clients.

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