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(Alliance News) - Compass Group PLC, ahead of its annual general meeting on Thursday, reported a double-digit percentage organic increase in revenue in its financial first quarter, while saying recent acquisitions hold the promise of more growth ahead.
The Surrey, England-based food catering firm said revenue grew by 12% organically in the three months that ended December 31. This was led by its Europe region, with a 13% increase, and Rest of World at 12%. North America growth was 11%.
Compass said like-for-like volume was better than anticipated in the recent quarter, especially among Business & Industry clients.
"We've had a strong start to the year with sustained balanced growth across all regions," said Chief Executive Dominic Blakemore. "Outsourcing trends and volumes were strong despite continued inflationary pressures and some macroeconomic uncertainty."
Blakemore said the company's financial 2024 guidance remains unchanged, expecting underlying operating profit growth of 13%. This will come from high single-digit organic revenue growth and improved margins. Compass reported underlying operating profit of GBP2.12 billion in financial 2023.
Compass said it made net acquisition expenditure of USD352 million in the quarter to December. Since then, Compass agreed to buy CH&CO Catering Group Ltd for an enterprise value of GBP475 million, saying the Reading, Berkshire-based provider of contract and hospitality services will complement its own footprint in the UK and Ireland.
Compass will report its half-year results on May 15.
Compass shares were up 3.0% to 2,215.00 pence early Thursday in London.
By Tom Waite, Alliance News editor
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