Compass Group Q3 Organic Revenue Rises 36.4%

Compass Group (CPG.L,CMPGF.PK) reported third-quarter organic revenue growth of 36.4%, lapping the first full quarter of COVID-impacted revenues.

The company's operating margin rose by 80bps to 5.0% in the third quarter from 4.2% in the second quarter, as it continued to manage costs, resize business, and adapt its operations.

Trading results from the company's overseas operations are translated at the average exchange rates for the period. If current spot rates were to continue for the remainder of the year, foreign exchange translation would negatively impact 2020 revenue by £968 million and operating profit by £39 million, the company stated.

Further, Compass Group noted that it continues to benefit from the acceleration in first-time outsourcing and market share gains. In the fourth quarter, with the ongoing reopening and mobilisation of sites in some of the company's biggest markets, it expects to be trading at 80%-85% of pre-COVID levels and its operating margin is expected to increase by a further 50-100 bps to 5.5%-6.0%.

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