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Compass Group has provided a trading performance update for the three months ended 31 December 2022 ahead of the Company’s Annual General Meeting, which is taking place today.
In the first quarter of the year, the Group’s organic revenue grew by 24 per cent. All regions performed strongly with organic growth of 23 per cent in North America, 26 per cent in Europe and 27 per cent in Rest of World.
The Group continues to benefit from strong outsourcing trends with net new business growth of 5.5 per cent, which its says is “significantly above” its historical rate of around 3 per cent, and in line with FY 20221. The business adds it is particularly pleased with the continued strong net new business performance in Europe which is benefiting from the “increased focus on growth and retention, supported by investments in people, brands and processes”.
Like for like volumes were particularly strong in Business & Industry, as employees continued to return to the office, and in Sports & Leisure, where participation rates remained high. Whilst inflation remained elevated, Compass says it has continued to work closely with its clients to help mitigate this pressure both operationally and through appropriate pricing.
Looking ahead the Group says “the outsourcing market remains strong, and we are excited about the significant growth potential across our markets. The increasingly complex operating environment and growing focus on sustainability and digitalisation, combined with our market leading offering, mean we are best placed to capture these opportunities”. It also acknowledged that while populations continued to return to the office and consumer demand has been resilient, it was “mindful of the uncertain macroenvironment and any potential impact on discretionary spending”.
The Group says it remains positive for FY 2023 and reiterates its guidance. Compass stated: “We expect operating profit growth above 20 per cent on a constant currency basis, organic revenue growth of around 15 per cent, weighted towards the first half of the year, and an underlying operating margin above 6.5 per cent. Looking further ahead, we remain excited about the significant structural growth opportunities globally, leading to the potential for revenue and profit growth above historical rates, returning margin to pre-pandemic levels and rewarding shareholders with further returns.”
FMJ in conjunction with Grundon Waste Management is pleased to launch the 2023 waste management and recycling survey which examines the ways in which FMs approach their waste management responsibilities.
In this, the sixth year for the annual appraisal, we know there is a greater opportunity than ever for FMs to reappraise their waste and recycling operations and help their organisations meet the growing pressure to achieve ESG goals.
We want to learn how FMs have adapted to the legislative, economic and societal changes of the past year and how they plan to meet the latest waste and recycling targets.
In this survey we’ve posed a series of questions which include insights into FMs’ waste management strategy and targets, how they’re moving towards zero waste targets, and the importance of not just meeting compliance targets but also ESG goals.
The results of the 2023 survey will be published in FMJ magazine and form the basis of a white paper co-written by FMJ and the experts at Grundon on how to approach waste and recycling strategies.
To take part click here.
