6th Feb 2025 08:45
(Alliance News) - Compass Group PLC on Thursday said it saw revenue rise in the first quarter of its current financial year, due to "strong" client retention.
The Chertsey, England-based contract caterer said it saw 9.2% on-year organic revenue growth during its first quarter that ended December 31, driven by "strong client retention, and pricing and volumes trending as anticipated".
Revenue grew 9.7% in North America, increased 8.4% in Europe and was up 7.9% in the rest of the world, the firm added.
If currency spot rates for foreign currency exchange continue, however, the group said it expects 2024 revenue to be reduced by around USD558 million, and operating profit by about USD36 million.
Looking ahead, Compass said its 2025 guidance remains unchanged. The group expects to deliver high single-digit underlying operating profit growth, with annual organic revenue growth over 7.5% and "ongoing" margin progression.
"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 [mergers & acquisitions] to support future growth, as we maintain our strong track record of delivering long-term, compounding shareholder returns."
Compass intends to release its interim results on May 14.
The group added that its 'rest of the world' region now accounts for around 5% of its total revenue. Compass now intends to combine its 'rest of the world' figures with its European figures to form a new 'International' region within its reporting. Restated financial information will be provided in March.
Shares in Compass were down 2.0% at 2,733.00 pence in London on Thursday morning.
By Emily Parsons, Alliance News reporter
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