May 15, 2019 / 7:26 AM / 2 months ago

British caterer Compass raises full-year organic revenue outlook

(Reuters) - Compass Group Plc on Wednesday raised its forecast for full-year organic revenue growth after UK defence contract wins and as performance in its North America business boosted first-half results.

Organic revenue for the world’s biggest catering firm rose 6.6% in the first half of the year, while underlying operating profit rose 5.8% at constant currency to 951 million pounds.

Shares of the FTSE 100-listed company, which provides meals for office workers, armed forces and school children in more than 50 countries, were up 1.7% at 1,758 pence.

The company’s results follow rival Sodexo SA, which reported a better-than-expected second-quarter revenue.

Compass, which counts Alphabet Inc’s Google, Coca-Cola Co, Royal Dutch Shell Plc and Nike Inc among its customers, said broad based organic revenue grew 7.9% in its North America business for the six months ended March 31.

“Following the very strong first half performance we now increase our organic revenue growth guidance for the full year and expect to deliver organic revenue growth and margin progression similar to 2018,” the company said.

Compass previously said it expects full-year organic revenue growth to be slightly above the mid-point of its 4% to 6% forecast range.

Reporting by Ismail Shakil and Karina Dsouza in Bengaluru; Editing by Shounak Dasgupta

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