Vending

Compass Group reports strong Q1 2022 revenue growth

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February 4, 2022

Compass Group PLC, which owns Canteen Vending Services Inc. in the U.S., reported Q1 2022 revenue rose 38.6% over Q4 2021, according to a trading update ahead of the company's annual general meeting.

Revenue for the quarter ending Dec. 31, 2021 reached 97% of the pre-COVID 2019 level.

The update noted the results reflect continued improvement across all sectors.

The quarterly improvement was largely driven by new business, continued strong client retention along with some ongoing recovery in the base business.

The emergence of the Omicron variant had a limited impact on the company during the period.

Performance also improved across all regions with four out of five sectors now trading above 100% of 2019 revenues.

• Growth was particularly strong in North America in sports and leisure and education.
• In Europe, all sectors traded well except for business and industry which continues to be impacted by reopening delays.
• The rest of world region continued to benefit from a higher exposure to the more resilient defense, offshore and remote sector.

The company expects full year organic revenue growth of 20%-25%, with quarterly growth rates moderating through the year.

Shares traded at $22.10 Thursday against a 52-week range of $18.97-$23.30.

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