Workers returning to office on Monday boosts Compass profits
The catering giant hailed the continued trend in workers returning to the office – singling out Monday in particular.
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Your support makes all the difference.Catering giant Compass Group has revealed a jump in revenues and profit led in part by workers returning to the office on Monday.
The firm – which provides food service for offices, universities and sports venues – said pre-tax profits grew by 21% to 1.2 billion US dollars (£1.03 billion) in the six months to March 31.
The firm’s statutory half-year revenues reached 20.7 billion US dollars (£17.8 billion) – up 11.2% – with its office canteen arm and the “continued return to office trend” credited as part of the factors driving the increase.
Compass is firing on all cylinders, with all regions delivering double-digit organic revenue growth in the first half
Chief financial officer Petro Parras hailed the continued trend in office workers returning to work – singling out Monday in particular as driving volume growth.
Compass said there has been a steady recovery in office attendance since Covid, with Monday now back at the same level as Thursdays.
The firm said the trend of returning to work on Mondays started in the US, but it has also seen increases in the UK and Europe as well.
Friday continues to lag behind the first four days of the week, although office workers who visit the canteen then tend to spend more – treating themselves to a nicer lunch or a few extra snacks.
The firm also credited the widening gap in the cost of high street lunch options versus its canteen prices for its increase in revenues.
It hiked its earnings outlook for the full year after the solid first half performance, saying it now expects underlying operating profit growth “towards 15%”.
Compass chief executive Dominic Blakemore said: “The group has delivered a strong set of results, with balanced double-digit organic revenue growth and good underlying operating margin progression across all regions.
“Europe is building a strong track record of growth, having benefited from investment and best practice sharing.”
Steve Clayton, head of equity funds at Hargreaves Lansdown, said Compass had delivered on market expectations of a “strong” report.
“Compass is firing on all cylinders, with all regions delivering double-digit organic revenue growth in the first half,” he said.
He added that Compass had succeeded in managing pricing and menu mix to absorb the impact of inflation, with food price inflation “no longer the scale of challenge that it once was”.