Compass Group's quarterly revenue has almost returned to pre-pandemic levels, the world's largest catering company said, as it benefits from new business and strong client retention.
Compass said organic revenue in the first quarter ended December 31 jumped nearly 39%, with total revenues reaching 97% of their pre-pandemic levels. Four out of five business sectors - including education, sports and healthcare - exceeded their 2019 revenues.
The British firm, which serves office workers, students, seniors in old-age homes, armed forces and events attendees across 45 countries, said it expects to win more contracts as organisations battling higher costs look to big players for their food services needs.
Pre-Pandemic Profit Margins
Building on previous positive forecasts, Compass also confirmed it would return to pre-pandemic profit margins of about 7% by the end of the fiscal year, but said it was being cautious of any impact from the new COVID-19 variant.
'We are mindful of some impact from the Omicron variant in Q2, with business & industry clients delaying their return to work, some sports & leisure events being postponed and education facilities extending remote learning,' it said in a statement.
Margin Progression
It expects margin progression to be weighed towards the second half of the year. Compass will announce its half-year results on 11 May.
'Looking further ahead, we remain excited about the significant structural growth opportunities globally, leading to the potential for revenue and profit growth above historical rates, returning margin to pre-pandemic levels, and rewarding shareholders with further returns,' it noted.
Last month, Compass's French rival Sodexo kept its full-year outlook even as it warned the return to remote work could hit volumes.
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