CMPGY Compass Group PLC (PK)

   By Christian Moess Laursen 
 

Compass Group on Tuesday backed its full-year guidance after organic revenue grew in the third quarter of fiscal 2023.

The U.K. catering contractor said organic revenue grew 15% in the quarter ended June 30, a slowing from 25% at the half-year, while year-to-date organic revenue has grown 21%, driven by client retention rate of 96.7%, net new business growth, pricing and volume growth.

The FTSE 100-listed company said it will continue to focus on bolt-on acquisition, and that its net expenditure year-to-date on acquisitions and disposals was 272 million pounds ($348.9 million).

If current currency movements continue for the remainder of the year, Compass expects this to have a positive impact on revenue and operating profit of GBP593 million and GBP43 million, respectively.

Looking ahead, the company reaffirmed its full-year view, and added that long-term it sees mid-to-high single-digit organic growth and a return to its historical margin, leading to profit growth above revenue growth, it said.

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

(END) Dow Jones Newswires

July 25, 2023 02:30 ET (06:30 GMT)

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