* Half of $4.1 bln new business from first-time clients
* H1 underlying operating profit up 12% to $1.84 bln,
organic revenue rises 7.2%
* Shares up more than 4%
May 11 (Reuters) – Compass Group raised its 2026
profit outlook on Monday, as the world’s largest caterer bet on
demand for workplace dining and new contract wins to offset
rising concerns over the impact of artificial intelligence on
office-based clients.
The company, which serves office workers at the likes of
Google, Amazon, and Microsoft, said
it expects full-year underlying operating profit growth above
11%, up from about 10% forecast earlier.
Its shares rose more than 4% in early trade, putting it
among the top gainers in the benchmark FTSE 100 index.
The upgraded forecast underscores the resilience of the
food services sector as companies increasingly outsource
catering operations amid rising costs, with Compass noting that
half of its $4.1 billion in new business came from first-time
clients.
Compass has been pushing into new sectors including defence
contracts, airline lounges outside North America and data
centres globally to diversify its revenue stream and offset
potential headwinds from AI and GLP-1 weight-loss drugs.
About 20% of its revenue comes from technology, professional and
financial services clients, exposing it to investor concerns
about AI disrupting office-based work, though CEO Dominic
Blakemore said in February the company was well-placed to
address any risks.
The caterer is also keeping an eye on the effect of
weight-loss drugs on its business model as the medications
suppress appetite. Compass, which serves everything from basic
cafeteria meals to premium fine dining, has said it has not seen
a material impact from the drugs so far.
It said underlying operating profit for the six months
ended March 31 jumped 12% to $1.84 billion, as the company
benefited from synergies from recent deals including its
largest-ever acquisition of European premium food services
business Vermaat.
Organic revenue grew 7.2%.
Compass’ results contrast with French rival Sodexo,
which cut its annual sales and profitability targets in April,
citing execution challenges and contract reviews.
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