B&I at Compass recovers to exceed 2019 levels
Top line recovery in Compass Group's Business & Industry sector has overtaken 2019 levels on a run-rate basis, according to the group's trading results for the third quarter ended 30 June 2022.
The strong growth momentum seen throughout the first half of the year continued into Q3 with North America, Europe and the Compass' business across the rest of the world operating above 2019 levels.
Net new growth was very strong at 6.9%, more than double the historical rate of 3%, and continued to be driven by an increase in outsourcing due to ongoing operational challenges and heightened inflation.
Underlying revenue was at 109% of 2019 revenues, with organic revenue growth of 43.4%.
The business increased its 2022 financial year organic revenue growth guidance from 30% to around 35%.
In the trading update, the group said: "While we are mindful of the challenging macroeconomic environment, we remain excited about the significant structural growth opportunities globally.
"With a clear strategy, operational scale, and market leading offer, Compass is very well positioned to capitalise on the increase in outsourcing opportunities. Longer term, we expect revenue and profit growth above historical rates, returning margin to pre-pandemic levels, and rewarding shareholders with further returns."
Compass Group generated annual revenues of £18.1b in the year to 30 September 2021.
It serves meals to millions of people in 44 countries and employs and engages with around 480,000 people.
Photo: Shutterstock / JHVEPhoto
