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Compass Group PLC on Tuesday affirmed its confidence in the company’s full-year prospects, backed by sales growth in the third quarter. Shares in the Chertsey, England-based contract caterer slipped 1.6% to $31.08 on Tuesday morning in London. Compass estimated that organic revenue in the quarter that ended June 30 grew by 7.1%, and in the year to-date by 7.2%. By region, organic revenue grew 7.5% in North America in the third quarter, and was up 7.3% year-to-date. International organic revenue advanced 6.4% in the third quarter and 6.9% year-to-date. Net new business growth accelerated into the target range of 4% to 5%. ‘We remain on track to deliver net new growth at this level for the fifth consecutive year,’ Compass noted. The company also hailed its ‘excellent’ 96% client retention rate, and said its pipeline of opportunities continues to support confidence in future growth. Like-for-like growth matched expectations, with the North American business enjoyed a modest boost from the football World Cup, Compass said, while the International business saw LfL growth moderate, due to ‘lower inflation and Sports & Leisure calendar timings’. Compass said it continues to see potential in the ‘fragmented’ outsourcing food services market, reiterating ‘confidence in delivering underlying operating profit growth of above 11% in constant currency.’ Capital expenditure is trending around 3.5% of sales for the year to-date, though at the end of the year, this is expected to be elevated due to client mobilisation timing. Net expenditure on mergers and acquisitions was $2.4 billion year-to-date, broadly unchanged from the level reported at the end of the first half. Chief Executive Dominic Blakemore commented: ‘We are winning market share across multiple sectors, supported by the strongest pipeline of opportunities we have ever seen. With an addressable market exceeding $360 billion and significant opportunities to further increase penetration, we remain confident in delivering another year of strong earnings growth and continued margin progression.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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