Compass Group has seen its revenue increase by 8.5% year-on-year despite a slowdown in its Q2 performance.

In the six months to 31 March, the UK-based food services provider’s revenue reached $22.6bn, while its operating profit increased by 11.6% to $1.62bn.

It added that in the last 12 months, it recorded $3.6bn in new business, which is an increase of 8.5% year-on-year.

Furthermore, Compass revealed that its earnings per share jumped by 10.6% to 64.5 cent, while its interim dividend per share increased by 9.2% to 22.6 cent.

Group chief executive at Compass, Dominic Blakemore, said: "The group achieved double-digit underlying operating profit growth driven by strong organic revenue and margin progression across both regions. We are now in the fourth year of net new business growth within our 4-5% target range, supported by an improved performance in Europe and client retention rate of over 96%.

"The market opportunity is very attractive, with first-time outsourcing accounting for 45% of new business wins. We have a diverse sector portfolio, wide-ranging client base and significant local purchasing scale. Although not immune to macroeconomic pressures, we are confident in the resilience of our business model, strength of our value proposition and ability to capitalise on outsourcing opportunities."

Compass stated that its outlook for the rest of the 2025 financial year remains unchanged, as it expects to reach high single-digit underlying operating profit growth, which is set to be driven by organic revenue growth above 7.5%.

Looking further ahead, the group also said it was confident in "sustaining mid-to-high single-digit organic revenue growth", with profit growth set to beat its revenue targets.

Investment director at AJ Bell, Russ Mould, commented that while Compass' H1 numbers were "impressive", growth did slow in Q2, leading to shares in the group dropping by almost 2% following the update.

He added: "The decision to stick with current guidance implies a continued modest slowdown in the remainder of the year – although notably the growth the company is chalking up is significantly ahead of that generated by its peers.

"Underlying numbers were encouraging with net new business wins and client retention looking fairly robust, and the company’s services remain in demand as businesses look to outsource catering as a means of reducing overheads.

"Tariffs are unlikely to have too big an impact on the company, bar some unhelpful macroeconomic uncertainty, with its supply chains predominately local to the areas in which it operates."

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