Compass: stock struggling after mixed trading update
(CercleFinance.com) - Compass Group, the world's largest catering company, expressed confidence in its margins on Thursday, despite a sharp fall in business.
The British group said this morning that it expects organic revenue to fall by around 28% in the three months to the end of March, the second of its financial year.
However, the supplier of corporate and school canteens expects its operating margin to improve in the current quarter to around 4% - from 2.7% in the previous quarter.
Thanks to its cost control and it adapting its businesses, Compass nevertheless expects to return to a margin of over 7% before the market returns to its pre-crisis volumes: on this point, the group nevertheless expresses its doubts.
While it is true that vaccination efforts are progressing worldwide, the pace of volume recovery remains uncertain, it acknowledged in a statement.
However, people seemed to be having lunch elsewhere on Thursday, with the share down around 1% in London.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The British group said this morning that it expects organic revenue to fall by around 28% in the three months to the end of March, the second of its financial year.
However, the supplier of corporate and school canteens expects its operating margin to improve in the current quarter to around 4% - from 2.7% in the previous quarter.
Thanks to its cost control and it adapting its businesses, Compass nevertheless expects to return to a margin of over 7% before the market returns to its pre-crisis volumes: on this point, the group nevertheless expresses its doubts.
While it is true that vaccination efforts are progressing worldwide, the pace of volume recovery remains uncertain, it acknowledged in a statement.
However, people seemed to be having lunch elsewhere on Thursday, with the share down around 1% in London.
Copyright (c) 2021 CercleFinance.com. All rights reserved.