UK’s Compass, the world’s largest caterer, sees profits treble – Digital Journal

0
16


With global inflation at the highest levels in decades due to rising energy and food bills, companies are trying to save money by outsourcing to contractors – Copyright AFP/File Yuichi YAMAZAKI

Britain’s Compass, the world’s biggest catering provider, said on Monday annual profits had tripled as companies switched to outsourcing meals in the face of inflation and skyrocketing energy costs.

After-tax profit rose to £1.1 billion ($1.3 billion) last year also on the easing of pandemic restrictions, Compass said in an earnings report. That compares with a net profit of £357m in 2021.

Revenue rose almost 43 per cent to £25.5bn as more companies decided to outsource their catering needs for the first time.

“The group’s performance exceeded our expectations,” chief executive Dominic Blakemore said, citing “strong” growth in new business.

“Our clients continue to face operational complexities and inflationary pressures, which are driving more outsourcing.”

Compass has emerged “as a stronger and more resilient business” in the wake of the Covid pandemic, he added.

With global inflation at the highest levels in decades due to rising energy and food bills, companies are trying to save money by outsourcing to contractors.

But Blakemore also warned of the “uncertain” economic outlook with the UK economy currently mired in recession, according to the government.

However, Compass forecast that underlying operating profit would grow more than 20 percent next year.

Its share price plunged about 3 percent in morning trading in the London stock market plunge as many investors chose to take profits on recent gains.

LEAVE A REPLY

Please enter your comment!
Please enter your name here