Catering giant Compass saw its third-quarter organic revenue grow by 36.4%, lapping the first full quarter when the company was hit hard by the Covid lockdowns.
Revenues in its Business and Education division improved as canteens in offices and schools started to reopen. The British firm’s Sports & Leisure business also benefitted from higher attendance levels following an easing of restrictions in North America.
Meanwhile, the group’s operating margin came in at the top end of its forecast, increasing by 80bps on the previous quarter to 5.0% as it worked to manage costs, resize the business, and adapt its operations to the current trading conditions.
Compass is forecasting that trading will be around 80% to 85% of pre-pandemic levels in the fourth quarter, benefitting partly from university campuses reopening in the Autumn.
“We are confident in our ability to return to a group underlying margin above 7% before we return to pre-Covid volumes,” the group said.
“In the longer term, we remain excited about the significant structural market opportunities globally, the potential for further revenue and profit growth, and shareholder returns over time.”
NAM Implication:
- Comparisons with 2019 might be a useful measure for those that matter…
