Compass Group PLC (LSE:CPG), the food services company, reported an uptick in third-quarter revenues as it reiterated full-year guidance.
Organic revenue in the three months to 30 June 2023 grew 15% compared to the same period a year earlier and by 21% in the year to date, a statement said.
As a result, the FTSE 100 company reiterated full-year guidance and expects to deliver operating profit growth towards 30%, organic revenue growth of around 18% and an underlying operating margin between 6.7% and 6.8%.
Longer term, Compass said it expects to sustain mid-to-high single-digit organic growth, with plans to reward shareholders with returns.
Compass added that it has completed £250mln of its £750mln share buyback and that it aims to repurchase the remaining £500mln worth of shares by its full-year results on 20 November.
From 1 October, the firm said it will report earnings in US dollars to “align with our business exposure and reduce foreign exchange volatility on earnings”.
Compass said it is making margin progress despite elevated inflation by mitigating cost pressures, appropriate pricing and operational leverage.
Additionally, Compass said it is focused on bolt-on acquisitions to strengthen its competitive advantage, with a year-to-date net expenditure of £272mln on acquisitions and disposals.