Compass Group raises profit forecast amid robust revenue growth globally

North America currently contributes approximately two-thirds of Compass Group’s total revenues | Photo credit: Compass Group

Compass Group has posted third quarter double-digit revenue growth and raised its profit forecast for the second time in as many months. 
 

The UK-based contract catering and foodservice group achieved 10.3% year-on-year sales growth in the three months ending 30 June 2024 – with group revenues tracking 11% above last year for the first nine months of its financial year. 

Sales in North America, which contributes approximately two-thirds of Compass Group’s total revenues, increased 10%, while its Europe and Rest of the World segments grew 12% and 8.5% respectively. 

Compass Group, which provides catering services to offices, universities and sports stadiums, currently operates across 33 markets globally. In a press release, the group said net new business growth accelerated during the quarter ‘as expected’ while pricing ‘moderated in line with inflation’.

Volumes continued to benefit from ‘the quality of our offer and the value gap compared to the high street’, it added. 

Compass Group forecasts full-year underlying operating profit growth will exceed 15% on a constant-currency basis, with total revenue growth above 10%.  

The company’s sales in the 12 months ending 30 September 2023 grew 19% year-on-year to reach £31.3bn ($39bn). Revenues in the first half of this year increased 11.2% year-on-year to $20.9bn.