Shares in catering company Compass (LON:CPG) fell on Thursday, after the group reported a more challenging business environment in Europe.
The group managed to record a positive performance for the third quarter period, with organic revenue up by 5.7 percent across the whole group. Organic revenue growth in North America was up 7 percent, boosted by “particularly good growth” in its Business & Industry,
In Europe, revenue growth was a little more subdued, 3.2 percent (2% excluding Easter). The margin for the nine months to June 30 was down slightly year-on-year, but the company still expects “modest margin progression” for the full year.
“Better than planned margin improvement in Rest of World, is offsetting a more difficult volume and cost environment in Europe. As a result, our full year expectations are unchanged, with organic growth above the middle of our 4-6 percent range, and modest margin progression,” the company said.
“Looking to the longer term, we continue to be excited about the significant structural market opportunity globally and the potential for further revenue growth, margin improvement and continued returns to shareholders”.
The company added that continued strength in the pound would weigh on revenues, and that financial year end net debt to EBITDA ratio is expected to be around 1.5x.
Shares in Compass Group (LON:CPG) are currently down 3.19 percent at 1,591.00 (0920GMT).
