Pre-Close Trading Update

RNS Number : 3967T
Compass Group PLC
25 March 2021
 

Legal Entity Identifier (LEI):   No. 2138008M6MH9OZ6U2T68

 

 

 

 

 

25 March 2021

 

 

Pre-Close Trading Update

Continued good margin improvement whilst volumes remain subdued

 

By region

Organic revenue[1]

Operating margin[2]

Q1 2021

Q2 2021

HY 2021

Q1 2021

Q2 2021

HY 2021

 

North America

(36.7)%

c. (30)%

c. (34)%

4.0%

c. 5.4%

c. 4.6%

 

Europe

(34.6)%

c. (30)%

c. (33)%

1.2%

c. 1.7%

c. 1.4%

 

Rest of World

(12.3)%

c. (10)%

c. (11)%

4.0%

c. 5.3%

c. 4.6%

 

Group

(33.7)%

c. (28)%

c. (31)%

2.7%

c. 4.0%

c. 3.4%

 

By sector

Organic revenue 1

Q3 2020

Q4 2020

Q1 2021

Q2 2021

HY 2021

Business & Industry

(50.7)%

(44.1)%

(43.4)%

c. (41)%

c. (42)%

Education

(60.2)%

(35.1)%

(37.0)%

c. (29)%

c. (33)%

Healthcare & Seniors

(5.1)%

0.2%

0.8%

c. 1%

c. 1%

Sports & Leisure

(89.9)%

(78.9)%

(76.5)%

c. (69)%

c. (73)%

DOR

(8.8)%

(7.6)%

(1.2)%

flat

c. (1)%

Group

(44.3)%

(34.1)%

(33.7)%

c. (28)%

c. (31)%

% of 2019 revenues[3]

56.4%

66.5%

71.1%

c. 71%

c. 71%

The Group's organic revenue for the three months to 31 March 2021 is expected to be
c. (28)% as we begin to lap the COVID-19 impact on our last year's revenues. Organic revenues for the six months are expected to be c. (31)%. In both Q2 and HY 2021, we have been operating at c. 71% of our 2019 revenues.

The Group's operating margin is expected to increase by around 130bps from 2.7% in Q1 to c. 4.0% in Q2, resulting in a half year margin of c. 3.4%, despite similar volumes quarter on quarter.

 

Currency

 

Summary

 

 

 

****

 

 

Enquiries

 

Investors

Agatha Donnelly & Helen Javanshiri

+44 (0) 1932 573000

Press

Tim Danaher & Fiona Micallef-Eynaud, Brunswick

+44 (0)20 7404 5959

Website

www.compass-group.com

 

 

Note to Editors

a)  Compass Group PLC is the world's leading food service company, which generated annual revenues of £20.2 billion in the year to 30 September 2020.  It operates in around 45 countries, employs and engages around 550,000 people and serves over 5.5 billion meals a year. The Company specialises in providing food and a range of support services across the core sectors of Business & Industry, Healthcare & Seniors, Education, Sports & Leisure and Defence, Offshore & Remote, with an established brand portfolio. 

b)  Organic revenue, a term used throughout the announcement, is calculated by adjusting for acquisitions (excluding current period acquisitions and including a full period in respect of prior period acquisitions), sale and closure of businesses (excluded from both periods) and exchange rate movements (translating the prior period at current period exchange rates).

c)  Forward looking statements

Certain information included in this announcement is forward-looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements. Forward-looking statements cover all matters which are not historical facts and include, without limitation, projections relating to results of operations and financial conditions and the Company's plans and objectives for future operations, including, without limitation, discussions of expected future revenues, financing plans, expected expenditures and divestments, risks associated with changes in economic conditions, the strength of the foodservice and support services markets in the jurisdictions in which the Group operates, fluctuations in food and other product costs and prices and changes in exchange and interest rates. Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as "believes", "estimates", "anticipates", "expects", "forecasts", "intends", "plans", "projects", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. Forward-looking statements are not guarantees of future performance. All forward-looking statements in this announcement are based upon information known to the Company on the date of this announcement. Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward-looking statements, which speak only at their respective dates. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

d)  A copy of this release, together with all other recent announcements and presentations can be found on Compass Group's website at www.compass-group.com.

 

e)  For definitions please refer to the glossary of terms in the 2020 Annual Report and Accounts.

 

 

These results are unaudited.

[1] Year on year change.

[2] Underlying operating margin pre resizing costs. Resizing costs of £20m in Q1, c. £55m in Q2, predominantly in Europe.

[3] On a constant currency basis.

[4] Closing rates as at 19 March 2021.

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END
 
 
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