Compass Group (CPG) H1 2025 earnings summary

Executive summary

• Achieved double-digit underlying operating profit growth, with 8.5% organic revenue growth and client retention above 96%.

• Net new business growth at 4.4%, within the 4%-5% target for the fourth consecutive year.

• Continued investment in growth through $1.7bn in capex and M&A, expanding sector focus and leveraging technology.

• Diverse sector and geographic portfolio, with significant opportunities in core markets and through M&A.

• Completed portfolio reshaping with exits from four countries, enhancing resilience.

Financial highlights

• Underlying revenue rose 8.5% to $22.6bn; underlying operating profit up 11.6% to $1,627m; margin improved by 10bps to 7.2%.

• Underlying EPS grew 10.6% to 64.5c; interim dividend per share up 9.2% to 22.6c.

• Free cash flow was $743m, up 5.5% year-over-year; free cash flow conversion at 67.5%.

• Net debt increased to $6.6bn, with leverage at 1.5x EBITDA, within target range.

• CapEx was 3% of revenue; $1.7bn invested in CapEx and M&A in the first half.

Outlook and guidance

• FY25 guidance unchanged: organic revenue growth above 7.5%, high single-digit operating profit growth, and ongoing margin improvement.

• Underlying finance costs expected around $300m and effective tax rate at 25.5% for 2025.

• Working capital expected to be broadly flat for the full year.

• Longer-term, mid- to high single-digit organic revenue growth and profit growth ahead of revenue expected.