Compass increases organic revenue by 5.2% in Q3

29 July 2016 by
Compass increases organic revenue by 5.2% in Q3

Compass Group's organic revenue grew by 5.2% in the third quarter of 2016 as a result of new business wins and good retention across all regions.

The global foodservice company said the results reflect "strong net new business in North America, good growth in Europe and a challenging environment in the rest of the world."

Overall, the operating margin for the nine months to 30 June 2016 was flat before restructuring costs, while the company's management and performance programme continued to drive efficiencies.

In North America the company experienced organic revenue growth of 8.3% in the third quarter; while in Europe it increased by 3.7%.

For the rest of the world it declined by 2.8% in Q3, although it increased by 0.2% in the nine-month period.

The company said trading in its offshore and remote business remained challenging with revenues down 9%.

The firm said it was pleased with the recovery in Europe but that "the macroeconomic outlook has become increasingly uncertain."

However, it said there is potential for further revenue growth and margin improvement with significant structural market opportunities being globally available.

Compass Group operates in over 50 countries, with annual revenue of more than £18b per year. Its sectors include business and industry, healthcare and seniors, education, defence, offshore and remote, sports and leisure, and vending.

Compass Group delivers positive growth in North America and rest of the world >>

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