Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Compass Group full-year profit rises 7.1 percent

Published 20/11/2018, 08:13
© Reuters.  Compass Group full-year profit rises 7.1 percent
UK100
-
KO
-
SHEL
-
GOOGL
-
CPG
-
NKE
-
GOOG
-

(Reuters) - Compass Group Plc (L:CPG) reported a 7.1 percent rise in full-year profit on Tuesday as cost-cutting efforts at the world's biggest catering firm paid off and it raised prices.

The caterer has been cutting food, labour and overhead expenses to boost profit, but operating margin remained flat at 7.4 percent due to lower volumes and higher costs at its UK business.

The company said its expectations for full year 2019 were positive, and added it expects organic growth to be in the middle of its 4 percent to 6 percent range. For the previous year, it had forecast organic growth above the middle of the range.

The British company, which serves over 5.5 billion meals a year in more than 50 countries, also said it was managing its portfolio to increase its focus on food and that it was in the process of disposing up to 5 percent of revenues in its non-core businesses.

Underlying operating profit rose to 1.74 billion pounds for the year ended Sept. 30, from 1.63 billion pounds a year earlier, as cost-cutting measures and price increases paid off.

Comapss, which counts Alphabet Inc's (O:GOOGL) Google, Coca-Cola (N:KO), Shell (AS:RDSa) and Nike Inc (N:NKE) among its customers, said underlying revenue rose 5.5 percent to 23.24 billion pounds.

Compass also said it had identified a potential impact on its food supply chain and labour force ahead of the UK's exit from the European Union, adding that it was taking actions to assess and mitigate any impact.

Shares of the company were up 2.1 percent and were among the top gainers on the UK bluechip index (FTSE).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.