Compass Group reports strong third quarter

Compass Group has reported a strong third quarter with worldwide organic revenue growth of 15%.

Year-to-date growth stands at 21%, which the foodservice giant has attributed to a 96.7% client retention rate, new business growth of 5% and volume growth of 9%.

Europe has performed ahead of the global business with third quarter growth of 17% and year-to-date growth of 24%.

Compass said that a trend towards outsourcing was being seen across its operating regions, creating a good pipeline of new business. It added that inflationary pressures were being mitigated through appropriate pricing and operational leverage.

Within its trading update the group said: "We continue 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, we expect the growth opportunities to sustain mid-to-high single-digit organic growth and a path back to our historical margin, leading to profit growth above revenue growth.

"With our proven value creation model, we will continue rewarding shareholders with compounding returns over the long term."