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Compass Group dishes up profit as US sales grow

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Compass Group (LON:CPG) has served up a 5.4% rise in pre-tax profits, spurred by sales growth from its North American and emerging markets operations.

The catering firm, which serves around 3bn meals a year to schools, hospitals and factories, said full-year revenues increased by 4.1% to £17bn as profits before tax jumped to £1.16bn.

Margins improved by 10% for the food service company, which has been trying to cut costs in the 50 countries it operates in.

Chief executive Richard Cousins said the business managed to keep hold of 93.5% of clients in the full year to September.

He added that certain contracts in Europe were cut short due to economic conditions.

Operating profit in North America increased by £49mln to £666mln, though like for like volume remained flat.

Its emerging markets unit posted strong growth in Brazil, where it says the pipeline remains encouraging.

India and China delivered double digit growth, driven by strong new business wins.

Australia, meanwhile, delivered flat organic revenue growth due to the slowdown in the offshore and remote sector

Revenues from in Europe and Japan totalled £5.7bn, down from £6bn the previous year.

Shares were 2p higher at 1,076p.

 

 

Quick facts: Compass Group

Price: 1945 GBX

LSE:CPG
Market: LSE
Market Cap: £30.83 billion
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