World’s biggest caterer sees 3.9% organic growth
The world’s biggest catering group, Compass Group Plc, has reported a 3.9% rise in organic revenue, driven by strong performance in the U.S. The British company serves over 5 billion meals each year in more than 50 countries, and said it was seeing “good” growth across all its divisions with the exception of oil and gas.
Compass Group said that adjusted organic growth for the quarter jumped by 7.8% in North America, year-over-year. This drove the company’s overall earnings, significantly beat analysts’ expectations, and masks the fact that all of Compass Group’s sub-sector groups saw strong growth in the region. The company also maintained its full-year margin expectations.
During the third quarter, the company saw growth in Europe, although it failed to live up to analysts’ expectations. Overall, the company logged 2.2% organic growth in the region, while its Rest of World segment saw a slight decline.
In a statement, the group said: “Compass had a good third quarter and our full year expectations remain positive and unchanged. North America is performing strongly and we anticipate further progress in Europe and Rest of World in the fourth quarter.”
“We remain focused on driving efficiencies throughout the business and our margin expectations for the full year are also unchanged. Looking to the longer term, we continue to be excited about the significant structural market opportunity globally and the potential for further revenue growth, margin improvement and continued returns to shareholders.”
Dominion holds Compass Group in its Global Trends Managed Fund.
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