Compass Group on Tuesday maintained its annual outlook and reported a 15% jump in third-quarter organic revenue, with the British food caterer benefiting from new businesses, higher prices and as more people returned to work and events.
The world's largest catering group said it continues to expect underlying operating margin between 6.7% and 6.8% and organic revenue growth of around 18% for the year ending September 2023.
"Whilst inflation remains elevated, we are making margin progress by mitigating cost pressures, pricing appropriately and benefiting from operational leverage," the company said in a statement.
The British company, which operates several food service brands catering to offices, universities and sports stadiums across 40 countries, said it expects to sustain mid-to-high single-digit organic growth in the long term and to return to historic margins.
Analysts on average expect underlying operating margin of 6.8% in 2023 and 7.1% in 2024, according to a company-compiled consensus of estimates.
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