Caterer Compass' first-quarter revenue beats expectations
(Reuters) -Compass reported first-quarter organic revenue growth of 9.2% on Thursday, ahead of market expectations, as the British catering group benefited from strong demand at its canteens, especially in North America and Europe.
The world's largest food catering firm, which serves offices, hospitals and universities in about 30 markets, retained its annual outlook.
The London-listed firm has been benefiting from global firms requiring employees to return to offices, boosting canteen spending as cost-conscious employees often prefer eating in-house to pricier external options.
"Resilience in Europe is, we think, the key positive against a tricky macro backdrop and, despite its size, Compass clearly outgrew its key listed peers," RBC Capital Markets analyst Karl Green said in a note.
In the three months to December 31, its fiscal first quarter, Compass' organic revenue growth - which excludes acquisitions, closures and currency moves - beat analysts' estimate of 8.8% growth, according to a company-compiled consensus.
North America, Compass' largest market, delivered 9.7% organic revenue growth, while Europe grew 8.4%.
French rival Sodexo and U.S.-based Aramark posted organic revenue growth of 4.6% and 5%, respectively, for the first quarter. France-based Elior is yet to report its first-quarter numbers.
Compass shares, which hit a record high earlier this week, were down 0.9% at 0917 GMT as the company also flagged that currency moves would knock $558 million off full-year revenue at current rates.
"We are an even more focused business and are leveraging investments in capex and M&A to support future growth," Compass said.
Last year, the group doubled down on its core markets through acquisitions including in Britain, France and Norway, while exiting non-core markets such as China, the UAE and Brazil.
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