* H1 profit, revenue slightly beat expectations
* Q3 margins to gradually recover
* CEO sees volume pick up from September onwards
(Rewrites throughout, adds CEO interview comments, analyst
quote)
By Yadarisa Shabong
May 12 (Reuters) - Food catering volumes will pick up from
September as students return to university campuses, audiences
attend sports and music events and economic activity recovers,
the head of Britain's Compass Group said on Wednesday.
Margins at the world's biggest catering company have
increased over the last year as it managed costs and
renegotiated contracts, but volumes are flat at about 70% of
pre-pandemic levels.
Compass, which serves office staff, school children, seniors
in old age homes, armed forces and events attendees across 45
countries, expects revenue recovery to be gradual.
"The real turning point for us will be the full re-opening
of the UK on the 21st of June and independence day on the 4th of
July in the U.S.," Chief Executive Officer Dominic Blakemore
told Reuters.
Compass provided catering at Tuesday's BRIT Awards, the
first major indoor music event with a live audience in London in
more than a year.
Over the summer months, Blakemore said he expected live
attendance at the Premier League and major league baseball games
to further help its volumes.
In common with others in the food services space, including
France's Sodexo and Elior Group and
U.S.-based Aramark, Compass was hit by lockdowns that made
people eat at home.
Blakemore said Compass will explore further M&A in the
digital sector and has already entered the delivery space with
acquisitions, including Feedr in London, Eat Club in the U.S.
West Coast and SmartQ in India.
"Compass Group's ability to expand into new categories, such
as delivery, will be fundamental to its survival," Third Bridge
analyst Harry Barnick said.
Compass' underlying profit of 290 million pounds ($409.74
million) in the six months to March 31 and revenue of 8.6
billion pounds slightly beat analyst expectations.
The group expects margins in fiscal third quarter ending
June of between 4.5% and 5% compared with 4.2% in the second
quarter and a negative 6% in the same period last year.
Shares in the FTSE 100 company were marginally higher in
early trade.
($1 = 0.7078 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Rashmi
Aich and Barbara Lewis)