Compass Group 1Q 2020 Organic Revenue Rose 5.3%; Warns on FX

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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