Compass Group: Initiation of Coverage – Tech-Powered Expansion & High-Stakes Capital Moves Unveiled! 

Compass Group PLC has released its full-year 2024 financial results, showcasing a strong performance with a 16% increase in operating profit and an 11% growth in organic revenue. The company reported a margin progression of 30 basis points, taking it to 7.1%. This has been complemented by a net new business growth of 4.2%, further gaining momentum in the second half of the year. Positively, Compass Group has demonstrated effective portfolio management by focusing on core markets and exiting non-core ones. The company has completed its disposal program, largely exiting Latin America and Kazakhstan, which is expected to impact 2025 profits by $30 million. However, this is seen as a strategic move to concentrate more on high-potential markets. Compass has also been active in mergers and acquisitions, spending around $1 billion on strategic acquisitions like CH&CO in the UK and HOFMANNs in Germany, which are expected to enhance portfolio strength and drive growth.