Compass: buoyant after a good start to the year

(CercleFinance.com) - Compass, the world's leading contract caterer, confirmed its annual forecasts on Thursday after reporting better-than-expected Q1 results.


The British group reported organic growth of 11.7% for the last three months of 2023, i.e. Q1 2023/2024, its non-calendar fiscal year.

In a reaction note, analysts at Stifel point out that this performance is both higher than the consensus (+10%) and the organic growth posted by its great rival, France's Sodexo (+8.2%).

In detail, growth was well-balanced between North America (+11.3%), Europe (+13%) and the Rest of the World zone (+11.8%).

For FY 2023/2024, Compass still forecasts around a 13% increase in recurring operating income, with organic growth close to 10% and an improved margin.

The stock gained 3.1% following this trading update, making it one of the best performers on the FTSE 100 index on Thursday morning in London.


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