Compass Group on track to meet full year guidance as it announces strong Q3
Surrey-headquartered food services giant Compass Group said it was on track to meet its full year targets as the company announced strong trading in its third quarter to June 30.
Organic revenue grew 15% in the period, with double-digit growth seen in all regions - Europe, North America, and rest of world.
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The company said outsourcing remained "strong" and was contributing to an "exciting pipeline of new business opportunities".
"Whilst inflation remains elevated, we are making margin progress by mitigating cost pressures, pricing appropriately and benefiting from operational leverage," it added.
For the full year to end-September, the company said it expected operating profit growth towards 30% on a constant-currency basis, to be delivered through organic revenue growth of around 18% and an underlying operating margin in the range of between 6.7% and 6.8%.
"Longer term, we expect the growth opportunities to sustain mid-to-high single-digit organic growth and a path back to our historical margin, leading to profit growth above revenue growth. With our proven value creation model, we will continue rewarding shareholders with compounding returns over the long term," it told investors.
