Compass Group PLC, a global leader in food services, announced results for the third quarter ending June 30, 2023.
Group and regional performance
Third-quarter performance was strong with organic revenue growth of 15%, despite lapping higher comparators due to recovery of base volumes.
Year-to-date organic revenue growth was 21%, benefiting from excellent client retention of 96.7%, balanced net new business growth of 5%, appropriate pricing of 7% and strong like-for-like volume growth of 9%.
Outsourcing trends remain strong and are contributing to an exciting pipeline of new business opportunities across all regions. While inflation remains elevated, the company is making margin progress by mitigating cost pressures, pricing appropriately and benefiting from operational leverage.
Summary and outlook
The company continues to expect operating profit growth toward 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 6.7% to 6.8%.
Longer term, it expects the growth opportunities to sustain mid-to-high single-digit organic growth and a path back to historical margin, leading to profit growth above revenue growth.