Compass Group 1Q Performance Improves Vs 4Q; Backs Fiscal Year 2022 Guidance

By Michael Susin

Compass Group PLC said Thursday that its performance in the first quarter of fiscal 2022 improved from the previous quarter, boosted by new business, strong client retention and a limited impact of the Omicron variant on its businesses.

The U.K. catering contractor said its performance in the three months period ended Dec. 31 has improved across all regions with four out of five sectors delivering revenue above 2019 levels.

Organic revenue for the quarter ended Dec. 31 rose 38.6%, compared with a 32.9% increase in the preceding quarter.

The company said it has spent 87 million pounds ($118.1 million) on acquisitions in North America and that it sees a strong pipeline of acquisitions across all regions and sectors.

Compass said it expects full-year organic revenue growth of 20%-25% and an underlying operating margin of more than 6%, with an exit rate of 7%, as guided in November.

Write to Michael Susin at [e-mail]

(END) Dow Jones Newswires

February 03, 2022 02:38 ET (07:38 GMT)

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