Vending

Compass Group reports Q1 2023 24% revenue boost

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February 10, 2023

Compass Group PLC, which owns Canteen Vending Services Inc. in the U.S., reported that organic revenue rose 24% in the first quarter of 2023 in a conference call with analysts.

Dominic Blakemore, group executive officer, said the company continues to benefit from strong outsourcing trends and a high client retention, according to a transcript posted on the company website.

Net new business rose 5.5%, which is "significant above our historical rate of around 3% and line with last year," Blakemore said in the transcript.

The company is pleased with the balance of growth growing at around the same rate in all regions.

Like-for-like volumes were particularly strong in business and industry as employees return to offices, and in sports and leisure where participation rates continue to remain high.

Blakemore noted there has been persistent high inflation, and while consumer demand has been resilient, the company is mindful about uncertain macro conditions that may impact discretionary spending.

"We expect operating profit growth above 20% on a constant currency basis with organic revenue growth of around 15% weighted towards the first half of the year, and an underlying operating margin above 6.5%," Blakemore said in the transcript.