Compass Group Backs Fiscal Year 2023 Guidance After 1Q Revenue Grew 24%

By Elena Vardon

Compass Group PLC said Thursday that it had growth across all its regions in the first quarter of fiscal 2023 as it continued to benefit from outsourcing trends and backed its full-year guidance.

The U.K. catering contractor said organic revenue in the three months period ended Dec. 31 grew 24% with net new business growing 5.5% in line with the previous fiscal year.

Compass had double-digit like-for-like volume increases in all regions, particularly in its business and industry sector as well as sports and leisure, it said.

The FTSE 100 company said it is positive for the year and backed its guidance for fiscal 2023. It expects to deliver operating profit growth of more than 20% on a constant-currency basis, organic revenue growth of around 15% weighed toward the first-half, and an underlying operating margin above 6.5%.

It said that if currency movements continue for the rest of the year, its fiscal 2022 results would benefit from foreign-exchange translation with revenue positively impacted by 1.31 billion pounds ($1.59 billion) and operating profit by GBP94 million.

Write to Elena Vardon at [e-mail]

(END) Dow Jones Newswires

February 09, 2023 02:37 ET (07:37 GMT)

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