* Sees H1 organic revenue growth towards 5 pct, in line with
* Expects operating profit margin increase of 15 basis
* FY expectations remain positive and unchanged
LONDON, March 26 Compass Group, the
world's biggest catering firm, said it expected revenue growth
of around 5 percent in the first half, buoyed by contract wins
in North America and Australia.
The firm, which serves 4 billion meals a year and operates
in some 50 countries, said trading had been strong in its core
North American market, helped by large university and healthcare
It said it had also seen good growth in Australia, thanks to
its oil and gas industry, and Brazil and Turkey.
Its 5 percent organic growth forecast for the six months to
end-March is the same as a year ago and in line with analysts'
forecasts. Compass added on Tuesday that it expected its
operating profit margin to increase by around 15 basis points in
At its North American business organic revenue growth, which
strips out contributions from acquisitions, is expected to be
around 8.5 percent, the firm said, with organic growth of over
10 percent expected in its 'fast growing and emerging markets'
As expected, revenue continued to decline in Europe, where
the firm has cut operations in the south. Organic revenue in the
region is expected to fall 2.5 percent in the first half.
The group, which provides catering to everyone from schools
and hospitals to offshore rigs and the tennis at Wimbledon, said
it remained on course to meet full-year expectations.
Shares in the firm, which have risen 15 percent in three
months, closed at 835 pence on Monday, valuing the business at
around 15 billion pounds ($23 billion).
Sodexo, the world's No.2 catering firm, has
forecast modest revenue and profit growth this year due to a
slowdown in Europe, and is targeting work in emerging markets
and outside of catering to grow its business.