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- Compass Group PLC on Tuesday raised its full-year revenue growth guidance following accelerating momentum in its third quarter.
Shares in the contract caterer were up 2.4% at 1,889.50 pence in London early Tuesday, making the stock the second-best performer in the FTSE 100 in early trade.
For its third quarter ended June 30, organic revenue rose 43%, accelerating from 38% at the half-year stage. This was driven by North America, up 50%, while Europe recorded growth of 42% and Rest of World of 16%.
Underlying revenue topped pre-pandemic levels in the quarter, standing at 109% of 2019 revenue, with all three territories operating above pre-virus levels.
By business segment, the only division which remained below pre-virus levels was Business & Industry, at 97% of 2019 revenue, while the remaining four sectors topped 2019 sales.
It added: ‘All regions and sectors are executing well, and we are particularly pleased with the recovery in Business & Industry, which is now trading above 2019 revenues on a run-rate basis.’
The Chertsey, Surrey-based firm lifted its full-year organic revenue growth guidance to around 35% from around 30% following the ‘significant acceleration in growth and ongoing recovery of our base business’.
The FTSE 100-listed firm confirmed its 2022 operating margin guidance of over 6%, and said it now expects its exit margin to moderate slightly from around 7% due to the strong net new performance and ongoing inflationary pressures.
‘While we are mindful of the challenging macroeconomic environment, we remain excited about the significant structural growth opportunities globally. With a clear strategy, operational scale, and market leading offer, Compass is very well positioned to capitalise on the increase in outsourcing opportunities,’ it said.
‘Longer term, we expect revenue and profit growth above historical rates, returning margin to pre-pandemic levels, and rewarding shareholders with further returns.’
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