Compass Group revenues grow 15% in Q3
According to the group, it will continue to focus on bolt-on acquisitions that support its capabilities and strengthen its competitive advantage
Foodservice company, Compass Group, has revealed that its performance was strong in the third quarter ended 30 June, with organic revenue growing 15%, despite lapping higher comparators due to recovery of base volumes.
The group also revealed that year-to-date organic revenue growth was 21% after benefiting from “excellent” client retention of 96.7%, balanced net new business growth of 5%, appropriate pricing of 7% and like-for-like volume growth of 9%.
According to the group, it will continue to focus on bolt-on acquisitions that support its capabilities and strengthen its competitive advantage. Compass’ net expenditure on acquisitions and disposals reached £272m for the year to date.
In addition, the group purchased £250m of the £750m share buyback programme announced in May 2023. Since the same time last year, the group announced a cumulative share buyback of £1.5bn.
The group says it is “pleased” with its Q3 performance, reiterating that it expects profit growth towards 30% on a constant-currency basis for its FY23 guidance.
Longer term, Compass expects the growth opportunities to sustain mid-to-high single-digit organic growth and a path back to its historical margin, leading to profit growth above revenue growth.
