Compass: Revenue surges as acquisition drive continues
Catering company Compass Group recorded organic revenue growth of 9.2 per cent last quarter, with all divisions contributing to growth.
The FTSE 100 food service group reported 9.7 per cent organic revenue growth in North America, 8.4 per cent in Europe, and 7.9 per cent in the rest of the world, it said in a quarterly trading statement today.
Compass said it had spent $1bn (£800m) on mergers and acquisitions during the quarter. Deals included its takeovers of Dupont Restauration in France and 4Service in Norway.
Last year, Compass announced plans for a multi-million-pound takeover of competitor CH&Co, the go-to hospitality provider for Kew Gardens and the Royal Opera House.
“We are pleased with the strong start to the year. The group delivered good growth across all regions and sectors, supported by continued strong client retention,” said Compass.
“We are an even more focused business and are leveraging investments in capex and M&A to support future growth, as we maintain our strong track record of delivering long-term, compounding shareholder returns.”
The group’s share price has risen 28 per cent in the last year.
Compass said that since its ‘rest of the world’ arm now accounted for only around five per cent of revenue, it would be grouping it with its European arm to form an International region alongside its North American one.
The firm also left its 2025 guidance unchanged, with expectations of high single digit underlying operating profit growth, with organic revenue growth above 7.5 per cent.
However, it warned that if currency spot rates continued for the rest of the year, foreign exchange translation would negatively impact revenue by $558m (£447m) and operating profit by $36m (£29m).
The firm’s half-year results are due out on 14 May 2025, with its full-year results set for 25 November 2025.