Compass reports slow progress in the reopening of B&I sites across Europe

Compass has reported a 54% reduction in organic revenue across Europe in Q3, with B&I contracts particularly hard hit by the Covid-19 outbreak.

In a trading update the global catering giant said its exposure to B&I was more widespread on the continent than other regions, and this was combined with Europe seeing more stringent lockdown restrictions.

It said it was “actively managing the situation” and working with clients to “pass through higher operating costs”, however it reported that “progress in the region would be slower”.

Across the group’s global portfolio Q3 saw a drop in revenue of 44%, equating to a 14% drop for the year to date.

Global performance was helped by the group’s healthcare, defence and offshore and remote contracts, and by the end of June 60% of its total business had reopened.

Dominic Blakemore, group chief executive, said: “Throughout the Covid-19 pandemic our priority has remained the health and safety of our employees and consumers. Trading has been challenging, but we continue to manage the business to protect the interests of all our stakeholders, including our people and the communities in which we operate.

“We are working with our clients to help them reopen and bring their teams back safely. We are also seeing encouraging signs of an acceleration in first-time outsourcing opportunities. Our focus on operational execution, our scale, and our strengthened balance sheet will enable us to succeed in this new environment and further consolidate our position as the industry leader in food services.”