British caterer Compass retains annual outlook as Q3 revenue jumps

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Compass Group on Tuesday maintained its annual outlook and reported a 15% jump in third-quarter organic revenue, with the British food caterer benefiting from new businesses, higher prices and as more people returned to work and events.

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25 Jul 2023

The world's largest catering group said it continues to expect underlying operating margin between 6.7% and 6.8% and organic revenue growth of around 18% for the year ending September 2023.

«Whilst inflation remains elevated, we are making margin progress by mitigating cost pressures, pricing appropriately and benefiting from operational leverage,» the company said in a statement.

The British company, which operates several food service brands catering to offices, universities and sports stadiums across 40 countries, said it expects to sustain mid-to-high single-digit organic growth in the long term and to return to historic margins.

Analysts on average expect underlying operating margin of 6.8% in 2023 and 7.1% in 2024, according to a company-compiled consensus of estimates.

This article was from Reuters and