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Compass Group PLC on Tuesday hailed strong growth across the board as it raised guidance for full-year growth in operating profit. ‘All regions continue to perform well, and industry trends remain strong, providing Compass with an exciting pipeline of new business opportunities,’ the Chertsey, England-based contract caterer said in a trading statement. In response, shares in Compass rose 3.6% to 2,269.00 pence in London on Tuesday morning. The wider FTSE 100 was down 0.4%. In the financial third quarter to June 30, Compass said organic revenue rose 10%. ‘As expected, net new business growth accelerated in [the third quarter], whilst pricing moderated in line with inflation. Volumes continued to benefit from the quality of our offer and the value gap compared to the high street,’ Compass said. In North America, organic revenue rose 9.9%, while in Europe, it increased 12%. In the Rest of the World segment, organic revenue climbed 8.5%. Compass added: ‘We are pleased with our third quarter performance. The group delivered good growth across all regions and benefited from improved net new business in line with our expectations.’ For the full year, Compass now expects underlying operating profit growth to be above 15% on a constant-currency basis, with organic revenue growth above 10%. It had previously expected underlying operating profit growth ‘towards 15%’ and an organic revenue rise ‘towards 10%’. Compass did sound one note of caution, noting foreign exchange translation would negatively impact 2023 revenue by $106 million and operating profit by $17 million if current spot rates continue. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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