Back-to-the-office boost for catering giant Compass as sales jump 22%
- Sales rose 21.6% year-on-year to £31bn to September 30
- Operating profit rose 26.1% to £1.89 billion in the same period
Compass Group reported a rise in profit and revenue in its full-year results, with the company mainly attributing this to “strong performance and favorable foreign exchange rates”.
The hospitality giant told investors that sales rose 21.6 percent to £31 billion in the year to September 30 compared to a year earlier.
The company said this was primarily due to “higher revenue and margin improvements as well as favorable currency translation.”
The hospitality giant told investors that sales rose 21.6 percent to £31 billion in the year to September 30 compared to a year earlier
The FTSE 100-listed company also said operating profit rose 26.1 percent to £1.89 billion in the same period.
The group also reported that it hopes to achieve an operating return on sales of 13 percent in the current financial year through “high single-digit organic sales growth and continuous margin increases.”
The company also announced another share buyback worth up to $500 million (£410 million), which it aims to complete in 2024, subject to M&A activity.
Dominic Blakemore, group chief executive of Compass, said: “2023 was a strong year for Compass.” North America continued its long track record of excellent growth, while Europe recorded net new growth in the order of 4 to 5 percent in its second year.
“Throughout the year, we continued to successfully capitalize on dynamic outsourcing trends, resulting in another record year of new business wins and continued strong customer retention.”
“We have exited nine key countries to focus on markets with the greatest growth opportunities, and our strong cash generation continues to drive investment in our business through capital expenditure and attractive mergers and acquisitions.”
In February, Compass posted first-quarter organic sales growth of 24 percent The company told investors it was “excited” about the “significant growth potential” in its markets.
At the time, the group also reported that like-for-like volumes in business and industry were “particularly high” as employees continued to return to the office and to major sporting events.
Blakemore added: “We are confident that focus on our core markets, continued investment in our market-leading offering and proven processes will support high single-digit organic sales growth in 2024.”
“Going forward, we expect continued mid- to high-single-digit organic revenue growth and continued margin expansion, leading to earnings growth above revenue growth and increased cash generation.”
Compass Group shares fell 5.07 percent to 1,986.00 pence in Monday morning trading.
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