Compass Group 1Q 2020 Organic Revenue Rose 5.3%; Warns on FX
February 06 2020 - 2:47AM
Dow Jones News
By Adria Calatayud
Compass Group PLC (CPG.LN) said Thursday that organic revenue
for the first quarter of fiscal 2020 grew 5.3% and reiterated its
guidance for the full year, but warned of a possible
foreign-exchange hit.
The U.K. catering contractor said organic revenue growth in the
quarter to Dec. 31 was driven by strong levels of new-business wins
and good retention rates, particularly in North America. Compass
delivered organic revenue growth of 7.5% in North America.
Meanwhile, organic revenue was flat in Europe and up 4.7% in the
rest of the world, the company said.
Compass said currency movements reduced revenue by 71 million
pounds ($92.4 million) and profit by GBP6 million compared with the
same quarter of last year. If current rates were to continue for
the remainder of the year, the company's revenue would take a
GBP745 million hit and operating profit would be reduced by GBP61
million, it said.
The company said it continues to expect organic growth around
the mid-point of its 4%-6% guidance range while maintaining a
strong margin for the year ending in September.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
February 06, 2020 02:32 ET (07:32 GMT)
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