Compass Group's Outlook Is Positive But Currency Rates to Reduce Earnings
February 08 2018 - 3:04AM
Dow Jones News
By Dimitrios Kontos
Compass Group PLC (CPG.LN) said Thursday that its outlook for
fiscal 2018 is positive but if currency spot rates stay where they
are for the rest of the year, they will have a negative impact on
revenue and operating profit.
The U.K.-based company, which provides cleaning, property
management and contract food services, said currency movements hurt
first-quarter revenue, which was 288 million pounds ($400.7
million), and could negatively impact full-year revenue by GBP1.2
billion.
Foreign-exchange rates had a GBP24 million negative impact on
profit in the quarter ended Dec. 31 and could impact full-year
operating profit by GBP97 million, the company said.
Organic revenue in the first quarter grew 5.9%, the company
said, citing new business wins, strong retention rates and good
like-for-like revenue.
North America led organic revenue growth, with an 8.2% increase,
while Europe grew 2.1%. In the rest of the world organic growth
rose 4%, the company said.
All regions are performing better than anticipated, and Compass
Group now expects to be above the midpoint of its organic-growth
target range of 4%-6% in the full year, it said.
Write to Dimitrios Kontos at dimitrios.kontos@dowjones.com
(END) Dow Jones Newswires
February 08, 2018 02:49 ET (07:49 GMT)
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