…By Jack Sylva for TDPel Media.
Compass Group, the world’s largest contract caterer, has announced that its profit for the half-year has crossed £1 billion for the first time, as office workers and sports fans return.
The majority of Compass’s business is now in North America, and the company plans to report its profits in dollars to minimize the impact of currency market volatility on its figures.
CEO Dominic Blakemore said the currency shift reflects “the economic reality of our geographic footprints.”
The company also announced plans to return £750 million to investors through a share buyback.
Compass played a crucial role in the COVID-19 pandemic, serving 17,000 meals to military personnel during the Coronation and 35,000 to the Metropolitan police.
The company also served food and drink at the concert at Windsor Castle.
Compass’s specially formulated packed lunches, including honey and chicken salad pots, coronation chicken sub rolls, and slow-release energy flapjacks, were provided to the police during last weekend’s event to prevent exhaustion.
Blakemore stated that the company was anticipating catering for Wimbledon tennis, which had strong advance ticket sales.
The company also provides catering services for Chelsea, Tottenham, and Brentford football clubs, with a target of winning business from a total of ten Premier League members.
The company offers a “frictionless” digital service for fans.
Blakemore said most of Compass’s main key performance indicators are now back above pre-COVID-19 levels, with the exception of margin, which is still lagging because the company is almost 25% larger than it was before the pandemic.
He added that “sports and leisure led our volume recovery, we saw very, very strong spending.
We’re now seeing a catch-up in office attendance in the UK and particularly London.”
Analysis and commentary
The return of office workers and sports fans bodes well for the future of Compass Group, as the company’s profit for the half-year has crossed £1 billion for the first time.
This is a significant achievement and a testament to the company’s resilience and adaptability in the face of the COVID-19 pandemic.
The company’s decision to report profits in dollars is a smart move, given the volatility of the currency markets, which could have an impact on its figures.
Compass’s role in providing meals during the pandemic demonstrates the company’s commitment to supporting its customers and communities.
The specially formulated packed lunches provided to the police during last weekend’s event exemplify the company’s dedication to providing healthy and nutritious meals to those who need them the most.
The company’s catering services for sports clubs demonstrate its ability to provide bespoke services tailored to the needs of its clients.
The “frictionless” digital service for fans is a particularly innovative approach, which could help the company win new business in the future.
Compass Group’s strong financial performance and innovative approach to catering services bode well for the company’s future growth and success.