Compass delivers strong Q1 with double-digit growth across the board

(Sharecast News) - Catering giant Compass said it delivered a strong start to its financial year with organic revenue growth currently running ahead of full-year guidance. The company, which is targeting a high single-digit increase in organic revenues for the 12 months to 30 September 2024, said first-quarter organic sales were up 11.7%.

Compass said like-for-like volumes were better than anticipated, especially in its Business & Industry division, which accounts for a third of group revenues.

North America, Compass' biggest region which made up 68% of group sales last financial year, saw an 11.3% increase in organic revenues, while Europe and Rest of World grew 13.0% and 11.8%, respectively.

"We've had a strong start to the year with sustained balanced growth across all regions. Outsourcing trends and volumes were strong despite continued inflationary pressures and some macroeconomic uncertainty," said chief executive Dominic Blakemore.

"The group's good cash generation and balance sheet gives us the flexibility to invest in capex, driving organic growth, and acquire high quality businesses, unlocking further growth and enhancing shareholder returns."

Despite the strong start, the company said full-year guidance for high single-digit organic revenue growth remains unchanged, along with its target for underlying operating profit growth of 13%.