Compass Group (CPG) Q1 2025 TU earnings summary

Executive summary

• Organic revenue growth reached 9.2% in Q1 2025, with all regions and sectors performing well and strong client retention supporting growth.

• Net new business contributed about half of the growth, with signings at $3.6 billion annualized over the last 12 months and a record-high pipeline.

• Positive outsourcing trends and continued investment in M&A, including $1 billion spent mainly on Dupont (France) and 4Service (Norway), are enhancing sector capabilities.

Financial highlights

• Q1 2025 organic revenue growth: Group 9.2%, North America 9.7%, Europe 8.5%, Rest of World 7.9%.

• Net new business growth is in the 4-5% range, consistent with recent years.

• Pricing contributed about 3% to growth in Q1, with labor inflation at 4% and food inflation at 2% for a blended 3%.

• M&A expenditure year-to-date is approximately $1 billion, mainly for Dupont Restauration and 4Service.

• Currency translation at current rates would reduce 2024 revenue by $558 million and operating profit by $36 million.

Outlook and guidance

• 2025 guidance remains unchanged, targeting high single-digit underlying operating profit growth in constant currency.

• Organic revenue growth is expected to be above 7.5% for the year, with ongoing margin progression.

• Guidance includes the impact of recent acquisitions, disposals, and exits.

• Net new business is expected to remain in the 4-5% range, with potential for improvement in the second half.