Compass Group’s Q3 organic revenue grows 36.4% on trek back to pre-COVID prosperity

Foodservice and vending giant Compass Group reported this week that its third-quarter organic revenue grew by 36.4%, overlapping the first full quarter of COVID-impacted revenues.

As predicted, Compass said revenues in the B&I and education segments improved gradually while “defensive” sectors like healthcare, military, offshore and remote continued to grow at a faster pace. The caterer’s sports and leisure business benefitted significantly from higher attendance levels following an easing of COVID restrictions in the United. 

Britain’s Compass Group is the parent company of Compass USA and Canteen Vending Services, the largest vending and micro market operator.

Compass said its “flight to trust” continued, leading to new business wins across all regions, with around 50% of those gains coming from first-time outsourcing. Year to date, Compass’s retention rate remained strong at 95.4%.

The group’s operating margin increased by 80 basis points from 4.2% in the second quarter to 5% in third quarter. “We continued to manage our costs, resize our business and adapt our operations,” the company stated. 

In its fourth quarter, Compass expects its business to be about 80%-85% of pre-COVID levels and for operating margins to increase by 50 to 100 basis points, between 5.5% and 6%.