Compass Group PLC (LON:CPG) said it has had an “encouraging” start of the year as the cost-saving programme offsets weak performance in Europe.
The FTSE 100-listed caterer kept guidance for the 12 months to September unchanged.
READ: Compass Group chairman hands in notice
The three months to 31 December saw organic revenue rising 5.3% driven by North America and the rest of the world, while Europe remained flat as anticipated.
Foreign exchange movements hit revenues and profits by £71mln and £6mln respectively.
The company, the largest in its sector, warned the full-year impact will be £745mln and £61mln respectively if current spot rates continue.
At the start of the second quarter, the firm acquired Scandinavian business provider Fazer Food Services for €420mln.
"Compass retains its appeal to investors as a strongly defensive business while the steady stream of new business and acquisitions should provide some growth," said Ian Forrest, analyst at The Share Centre.
Shares rose 3% to 1,955p on Thursday at the opening bell.
--Adds analyst's comment, shares--