Compass Group blames Europe for holding back global growth

Compass Group has reported that difficult economic conditions in Europe have held back growth in the business.

In an interim management statement the foodservice firm, which reported revenues of £16.9b last financial year, said that organic revenue in Europe and Japan declined by 3.4% in the period 31 March 2013 compared to the same time last year.

Worldwide the firm reported good performance in the third quarter of its financial year, with North America, Brazil and Turkey doing well.

Revenue growth globally in the quarter was 4% up on the same period last year. For the nine months to 30 June 2013 it was up 4.5%.

Compass said that it had seen good levels of business in European countries but that retention rates were down after it had taken the decision to exit a number of uneconomic contracts.

It added that an ongoing efficiency programme in Europe was helping manage the tricky economic conditions and that overall expectations remained unchanged.

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