Compass post double-digit profit growth as full-year sales rise

(Sharecast News) - Catering giant Compass reported strong underlying sales growth in the fiscal year to 30 September, driven by a solid performance in North America and good client retention. Revenues totalled $46.1bn, up 9.7% on a statutory basis but 8.7% higher on an organic basis, with North American organic sales up 9.1% and international organic sales up 7.7%.

Net new business grew 4.5%, in line with the company's 4-5% long-term target, with pricing at around 3% and like-for-like volume growth of around 1%. Meanwhile, client retention was strong at 96.3%.

Strong top-line growth, along with a slight improvement in underlying operating margins to 7.2% from 7.1%, helped underlying operating profit rise 11.7% at constant currencies to $3.34bn.

Free cash flow gained 13.5% to $1.98bn, while the company declared a final dividend of 43.3 cents, taking the full-year payout to 65.9 cents, up 10.2% year-on-year.

"2025 was another strong year for Compass, delivering underlying operating profit growth of nearly 12%1 on a constant-currency basis, with both regions performing well," said chief executive Dominic Blakemore.

"This year's strong trading performance, combined with the significant market opportunity, which keeps expanding as we add new capabilities through M&A, reinforces our confidence in the sustainability of our long-term growth algorithm."

For the year ending September 2026, Compass said it was targeting underlying revenue growth of around 7.0%, slightly under analysts' forecasts. Banking group UBS said in a week ahead note on Friday: "We forecast FY26 organic revenue growth at 7.8% and view consensus expectations as too low at 7.1%."