2024-05-15 16:36:10 ET
Compass Group PLC (CMPGF)
Q2 2024 Results Conference Call
May 15, 2024 4:00 AM ET
Company Participants
Dominic Blakemore - Group CEO & Director
Petros Parras - Group CFO & Director
Conference Call Participants
Jamie Rollo - Morgan Stanley
Vicki Stern - Barclays
Jaafar Mestari - BNP Paribas
Ivar Billfalk-Kelly - UBS
Leo Carrington - Citi
Andre Juillard - Deutsche Bank
Neil Tyler - Redburn Atlantic
Presentation
Dominic Blakemore
Good morning, and welcome to our 2024 half year results. We've had a strong first half. Operating profit increased by 19%, driven by organic revenue growth to be 11% and an operating margin of 7.1%. The strong trading performance, along with our positive outlook gives us the confidence to raise guidance for underlying profit growth to towards 15%. We're delivering sustained, balanced growth and the business is in great shape.
The global market opportunity is large, giving us a significant structural growth runway. We're relentlessly focusing on our core markets where we're embedding proven processes and best practice. We have strong competitive advantages, including our brands and scale which have taken years to build and are difficult to replicate.
And we have scope to further unlock growth opportunities through investments, particularly in Europe. The ability to invest is crucial in our industry. CapEx, which is mostly client-related, supports new business wins, helps retain clients, improves the customer experience and leads to longer contracts.
In-fill M&A further supports our strong brand portfolio and capabilities and is a great source of talent. We're continuing to refine our portfolio, so we can increase our focus on core markets with better growth prospects, and we're investing more in core systems and processes. There's more detail on strategy in a moment, but with that, I'll now hand over to Petros.
Petros Parras
Thank you, Dominic. Good morning, everyone. First, looking at the components of revenue growth. Pricing trended around 5%, similar to the current blended rate of inflation, we're currently seeing.
Net new, which can be lumpy, was 3.7% and slightly better than we forecasted at Q1. We expect this to accelerate in the second half and be in the range of 4% to 5% for the full year. Volume growth of around 2.5% was stronger than we expected and there are several factors which contributed to that....
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Compass Group PLC (CMPGF) Q2 2024 Earnings Call Transcript