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Compass Group reports strong Q3 2023 results

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July 25, 2023

Compass Group PLC reported a strong Q3 2023 revenue performance over the prior year period, with organic revenue growth of 15%, despite lapping higher comparators due to recovery of base volumes, according to a financial report.

Year to date organic revenue growth was 21%, benefiting from client retention of 96.7%, balanced net new business growth of 5%, pricing of 7% and like-for-like volume growth of 9%

On a regional basis, organic growth was 14% for North America, 17% for Europe and 20% for the rest of the world.

The company reiterated its full year 2023 guidance and continues to expect operating profit growth towards 30% on a constant-currency basis to be delivered through organic revenue growth of around 18% and an underlying operating margin in the range of 6.7% to 6.8%.

Longer term, the company expects growth opportunities to sustain mid-to-high single-digit organic growth and a path back to historical margin leading to profit growth above revenue growth.