Regional reviews continued
North America
Underlying
Operating profit growth was 15.7% on a
constant-currency basis, increasing to
$2,335 million, driven by strong revenue
growth and operating margin progression.
Organic revenue growth was 10.5%, driven
by net new business growth, appropriate
levels of pricing and like-for-like volume
growth. Client retention rates remained
strong at 96.4%.
Growth rates were high single-digit or greater
across all sectors, and notably strong in
Business & Industry driven by net new
business growth and like-for-like volumes,
which benefited from the continued ‘return
to office’ trend and value proposition versus
the high street. Across our other sectors,
Sports & Leisure and Education continued
tobenefit from high attendance levels and
per capita spend levels, while Healthcare &
Senior Living business performance
includedstrong retail sales and new
businessopenings.
Operating margin increased by 40bps to
8.2% driven by management productivity
initiatives, cost control and appropriate levels
of pricing.
The region continues to acquire high-quality
businesses and talent within our existing
sectors, with a particular focus on vending.
Statutory
Statutory revenue increased by 10.9% to
$28,557 million reflecting the strong organic
revenue growth.
Statutory operating profit was $2,251 million
(2023: $1,931 million), with the difference
from underlying operating profit being
acquisition-related charges of $84 million
(2023: $88 million).
Europe
Underlying
The region continues to benefit from ongoing
investments in its people, brands and
processes. Operating profit was $583 million,
representing growth of 22.0% on a
constant-currency basis, driven by double-
digit revenue growth, strong margin
progression and the impact of acquisitions
during the year.
Organic revenue growth of 11.9% comprised
net new business growth, volume growth and
pricing. Client retention rates at 95.5%
remain significantly above historical levels.
All sectors delivered high single-digit growth
rates or above, with double-digit growth rates
achieved in Business & Industry, Education
and Defence, Offshore & Remote.
Operating margin increased by 30bps to
5.9%, reflecting management focus across
the portfolio, ongoing operational efficiencies
and appropriate levels of pricing.
We have increased our focus on M&A with
significant acquisitions to deepen our
sectorisation and sub-sectorisation
strategy,unlock new capabilities and
increase the flexibility of our operating
model. During the year, we acquired
HOFMANN
S
in Germany and CH&CO in the
UK and Ireland. Subsequent to the year-end,
we also completed the acquisition of
DupontRestauration in France and agreed
toacquire 4Service AS in Norway.
Additionally, as part of our focus on core
markets, we exited our joint venture in the
United Arab Emirates.
Statutory
Statutory revenue increased by 17.1% to
$9,737 million, with the difference from
underlying revenue being the presentation of
the share of results of our joint ventures
operating in the Middle East.
Statutory operating profit was $380 million
(2023: $297 million), with the difference
from underlying operating profit mainly
reflecting acquisition-related charges of
$151 million (2023: $56 million) and charges
related to the Group’s strategic portfolio
review of $43 million (2023: $118 million).
Rest of World
Underlying
Operating profit grew by 10.3% on a
constant-currency basis, to $224 million,
driven by strong organic revenue growth and
margin progression. This growth was despite
the impact of exits from our operations in
four non-core countries during the year.
Organic revenue growth was 8.5% and
strongest in our Business & Industry sector,
particularly in India, driven by high levels of
net new business growth and the ‘return to
office’ trend. All other sectors delivered
mid-to-high single-digit organic revenue
growth underpinned by net new business
growth, like-for-like volume growth and
pricing. Client retention rates remained
above historical levels at 94.3%.
Operating margin increased by a further
40bps to 6.0% reflecting the benefits from
strong focus on our core markets, including
Australia, Japan and India.
As part of the Group’s strategy to increase
focus on its core markets, we exited
Argentina, Angola, mainland China and
Brazil during the year and agreed to exit our
businesses in Chile, Colombia and Mexico,
subject to regulatory approval and
completion procedures. Subsequent to the
year-end, we agreed to exit our business in
Kazakhstan, subject to regulatory approval.
Statutory
Statutory revenue decreased by 3.7% to
$3,708 million reflecting the non-core
business disposals. There is no difference
between statutory and underlying revenue.
Statutory operating profit was $224 million
(2023: $205 million), with the difference
from underlying operating profit in 2023
being acquisition-related charges of $9
million.
22 Strategic Report