Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2024 05 15T215936Z 1 LYNXMPEK4E118 RTROPTP 4 COMPASS GROUP RESULTS scaled - Business Express

Catering firm Compass lifts profit forecast after strong first half


Catering firm Compass lifts profit forecast after strong first half

(Reuters) – British catering firm Compass Group raised its 2024 profit forecast on Wednesday, after reporting first-half earnings slightly ahead of market expectations, as new businesses and higher pricing offset inflationary headwinds.

The world’s largest food caterer with operations in over 30 countries expects volume growth to moderate after a boost in the past six months from more workers returning to offices, and sports and leisure events ramping up.

Shares fell 2% in early trading.

“Beyond 2024, we expect to sustain mid to high single-digit organic revenue growth, ongoing margin progression and profit growth ahead of revenue growth,” CEO Dominic Blakemore said in a statement.

Compass’ organic revenue for the year is expected to grow towards 10%, compared with analyst expectation of about 9.2%.

“(We) believe the stock can ‘work’ in what looks set to be another year of macro uncertainties,” RBC Capital Markets analyst Karl Green wrote in a note.

French rival Sodexo, which bagged the contract to serve the upcoming Paris Olympics, last month forecast 2024 organic revenue growth at the top of its 6% to 8% range.

Compass, caterer for the likes of Microsoft, Shell and Harvard Business School, expects 2024 underlying operating profit growth towards 15%, from an earlier forecast of 13%.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

The London-listed firm has been ramping up acquisitions as it doubles down on core markets.

The company catered the Super Bowl earlier this year and is set to do the same at the Wimbledon tennis championships and Coachella music festival in the summer.

It plans to exit Brazil, it said on Wednesday, following its departure from mainland China, United Arab Emirates, Argentina and Angola in the past six months.

Underlying operating profit rose nearly 19% to $1.47 billion for the six months ended March 31. Analysts had expected $1.46 billion, according to a company-compiled consensus.

 

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips and Bernadette Baum)

 

Recent Post: