Compass backs FY outlook as Q3 revenues jump

(Sharecast News) - Catering company Compass Group backed its full-year outlook on Tuesday as it posted an increase in third-quarter organic revenue. In an update for the quarter to the end of June, Compass said organic revenue rose 15%. Revenue in North America was up 14%, while Europe and Rest of World revenue jumped 17% and 20%, respectively.

"Outsourcing trends remain strong and are contributing to an exciting pipeline of new business opportunities across all our regions," it said. "Whilst inflation remains elevated, we are making margin progress by mitigating cost pressures, pricing appropriately and benefiting from operational leverage."

Compass said that for FY23, it continues to expect 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 of between 6.7% and 6.8%.