Compass warns on rising costs as Ukraine war sends food and energy prices to record high
Compass, the world’s largest catering company, said rising costs will dent profits in the coming months.
The FTSE 100 giant, which feeds office workers, the Armed Forces and schoolchildren in 44 countries, said its profit margin will fall from around 7 per cent in the three months to the end of September.
It also sounded a note of caution about the following 12 months due to red-hot inflation.
Compass, which feeds office workers, the armed forces and school children, said its profit margin will moderate from around 7% in the three months to the end of September
‘The reality is, with inflation rates this high, it’s going to be difficult to progress the margin much,’ said finance chief Palmer Brown.
The conflict in Ukraine, once the breadbasket of Europe, has sent food and energy prices soaring to record highs.
But Compass shares rose 3.3 per cent, or 61.5p, to 1906.5p as the company, which provides catering for sporting events such as Wimbledon, said revenues were also rising as it bounces back from the Covid pandemic.