Compass Group catering serves up strong American performance but struggles elsewhere

Alys Key
Follow Alys
Food Network & Cooking Channel New York City Wine & Food Festival Presented By Coca-Cola - Rooftop 'Chopped'
Compass has stacked up revenue growth (Source: Getty)

Compass Group, the world's largest catering business, reported 3.7 per cent organic revenue growth for the nine months to 30 June on the back of success in America.

Read more: Shrinkflation: Yes, sweets are getting smaller, but prices aren't falling

The figures

Organic revenue growth was 3.9 per cent in the third quarter, though the group said this would have been five per cent without the impact of Easter.

North America revenue was up 7.1 per cent for the quarter, consistent with 7.1 per cent growth over the year so far.

Easter was also blamed for a 0.3 per cent decline in European revenues, which would have otherwise been 2.2 per cent. But revenue grew one per cent across the nine month period.

Revenue from the rest of the world declined 1.3 per cent.

Read more: Reckitt Benckiser is offloading its food business to McCormick for $4.2bn

Why it's interesting

The group has just finished a restructuring of its offshore and remote business, supplying support services and catering for oil rigs.

Dwindling commodity prices therefore have an impact on the business. Australia's fading mining boom has depressed rest of world earnings. Meanwhile offshore the only under-performing sector in the US business.

Read more: Offshore energy firms say boosted support would generate £290bn for UK

What the company said

In a statement, the company said "we anticipate further progress in Europe and rest of world in the fourth quarter", and left expectations for the full year unchanged.

Read more: Compass reveals £1bn special divi as the weak pound boosts sales

Related articles