- Compass Group reported that organic revenue increased 11.7% in the first quarter
- The Surrey-based firm said comparable volumes were “better than anticipated.”
Compass Group hailed a “strong start” to the financial year after recording double-digit percentage growth across all regions.
The world’s largest catering company reported that its organic revenue increased 11.7 percent in the three months ending in December.
Sales grew the most in Europe, where they rose 13 percent, while they expanded 11.3 percent in North America and 11.8 percent in the rest of the world.
Healthy growth: Compass Group, the world’s largest catering company, reported that organic revenue rose 11.7 percent in the three months ending in December.
Compass said comparable volumes were “better than forecast”, particularly in its commercial and industrial division, which specializes in workplace catering and whose clients include Porsche and Heathrow Airport.
Since pandemic-related restrictions began to ease, the segment has recovered significantly as employers encouraged staff to return to their offices.
The Surrey-based company’s trading update comes a fortnight after it agreed to buy CH&CO for £475m to help expand its domestic operations.
CH&CO serves a wide range of sectors, but its clients include some of Britain’s most famous cultural institutions, including Kew Gardens, the Royal Opera House and Abbey Road Studios.
Like other catering companies, Compass has increased the volume of acquisitions in its largest territories, while reducing its presence in secondary markets such as China, Argentina and Angola.
During the first quarter, the FTSE 100 company’s net acquisition spending amounted to $352 million, with the majority of this spending related to its purchase of German cooked and frozen meals supplier Hofmann’s.
Dominic Blakemore, CEO of Compass, commented: ‘We have had a good start to the year with sustained and balanced growth across all regions.
‘Outsourcing trends and volumes were strong despite continued inflationary pressures and some macroeconomic uncertainty.
“The group’s good cash generation and balance sheet give us the flexibility to invest in capital expenditure, driving organic growth and acquire high-quality businesses, unlocking further growth and improving returns for shareholders.”
Compass further stated that it had completed about $100 million of its $500 million share repurchase program, which the company announced last November when releasing its annual results.
Last year, the company’s revenue rose 21.6 per cent to £31bn, while profits rose by more than a quarter to £1.9bn thanks to price and volume growth , and an increase in the number of new clients who outsourced their catering services.
Compass Group Shares They were 3 per cent higher at £22.13 on Thursday morning and have risen about 18 per cent in the last 12 months.