Vending
Compass Group reports Q1 2024 growth, plans to exit China
February 9, 2024
Compass Group PLC, the U.K.-based caterer which owns Canteen Vending Services Inc. and Chartlwells Higher Education in the U.S., reported Q1 2024 organic revenue growth of 11.7%, including 11.3% growth in North America, 13% growth in Europe and 11.8% growth in the rest of the world, according to a press release.
Growth was stronger than anticipated, particularly in business and industry.
The company's net acquisition expenditure was $352 million, most of which was related to the Hofmann acquisition. In January, the company agreed to acquire CH&CO in the U.K. for an initial enterprise value of $600 million, with annual revenue of $570 million.
Shares traded today at $28.09 against a 52-week range of $22.46 to $28.89.
The company also decided to dispose of its "small operations" in China.
"We've had a strong start to the year with sustained balanced growth across all regions," CEO Dominic Blakemore said in the press release. "Underlying operating profit growth is expected to be towards 13% delivered through high single-digit organic revenue growth and ongoing margin progression."
