Vending

Compass Group posts Q3 2021 36.4% organic revenue gain

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July 30, 2021

Compass Group PLC, the parent company of Compass Group North America and Canteen Vending Services, reported third quarter organic revenue grew by 36.4%, lapping the first full quarter of COVID-impacted revenues, according to a third quarter company trading update.

The 36.4% gain follows year-over-year losses of 33.7% and 26.8% in the prior two quarters, respectively. Organic revenue year-to-date is 16.1% down as of the third quarter.

Business, industry and education revenues improved gradually while healthcare, seniors, defense, offshore and remote continued to grow.

The sports and leisure business benefitted from higher attendance levels following an easing of restrictions in North America.

Close to half of new business came from first time outsourcing, while the year-to-date retention rate remained at 95.4%.

In Q4, with the ongoing reopening and mobilization of sites in some of the largest markets, the company expects to be trading at 80-85% of pre-COVID levels and operating margin is expected to increase by a further 50-100 basis points to 5.5%-6%.

The company remains confident in its ability to return to a group underlying margin above 7% before returning to pre-COVID volumes.

For an update on how the coronavirus pandemic has affected convenience services, click here.