Compass Group Lifts Guidance After Strong Quarterly Performance

By Christian Moess Laursen

Compass Group lifted its full-year guidance after reporting growth across all regions and improved net new business in the third quarter of fiscal 2024.

The U.K. catering contractor said Tuesday that its organic revenue grew 10% in its third quarter to June 30, a slight slowdown from 11.2% at the half-year. Still, net new business growth accelerated in the quarter, while pricing moderated in line with inflation, it said.

On the back of the quarterly performance, Compass raised its full-year expectations slightly, now targeting underlying operating profit growth above 15% through an organic revenue growth above 10%.

"All regions continue to perform well, and industry trends remain strong, providing Compass with an exciting pipeline of new business opportunities," the FTSE 100-listed company said.

Its previous guidance was for underlying operating profit growth and organic revenue growth toward 15% and 10%, respectively.

Revenue rose 11% in the nine months to the end of the quarter.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

July 23, 2024 02:30 ET (06:30 GMT)

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