British catering group Compass has raised its 2024 profit and revenue forecasts for the second time this year despite easing prices, after new businesses helped it beat third-quarter revenue expectations.
The world's largest catering group now expects underlying operating profit to grow above 15% and organic revenue above 10% for the fiscal year ending September. It had earlier said profit would rise towards 15% and revenue towards 10%.
Compass, which operates in more than 30 countries and caters the likes of Microsoft, Shell and Harvard Business School and events such as the Wimbledon tennis championship and Coachella music festival, reported a 10.3% rise in organic revenue for the quarter ended June 30.
Analysts had expected an organic revenue growth of 9.5% for the quarter, according to a company-supplied consensus.
A Bigger Business
Compass Group, which emerged as a much bigger business from the pandemic as companies turned to outsourcers to meet their canteen needs, has benefited from new businesses and a return to office despite food and labour inflationary headwinds.
'We are continuing to invest in our portfolio, as we replicate our North America blueprint elsewhere, to support our existing capabilities, increase operational flexibility and further strengthen our unique sectorised approach to the market,' it said.
The company said that all its regions performed well, supported by strong industry trends and a pipeline of new business opportunities. Net new business growth accelerated in Q3, while pricing moderated in line with inflation.
'Volumes continued to benefit from the quality of our offer and the value gap compared to the high street,' it added.
Additional reporting by ESM
