- Revenue increased by 21.6% to £31bn year-to-year to September 30
- Operating profit rose over the same time period by 26.1% to £1.89bn
Compass Group saw profits and revenue rise in its full-year results, with the firm mainly putting this down to ‘strong performance and favourable exchange rates’.
The catering giant told investors that revenue increased by 21.6 per cent to £31billion in the year to September 30, compared to the previous year.
The business said that this mainly reflected the ‘higher revenue and margin improvement, together with favourable exchange translation’.
The largest catering company revealed that revenue increased by 21.6 per cent to £31billion in the year to September 30 compared to the previous year
The FTSE 100-listed firm also said that operating profit had risen over the same time period by 26.1 per cent to £1.89billion.
The group also reported that it hopes to achieve an underlying operating group of 13 per cent in the current financial year through ‘high single-digit organic revenue growth and ongoing margin progression.’
The company also announced a further share buyback of up to $500million (£410million), which it hopes to complete in 2024, subject to M&A activity.
Dominic Blakemore, group chief executive of Compass, said: ‘2023 was a strong year for Compass. North America continued its long track record of excellent growth whilst Europe delivered a second year of net new growth in the 4-5 per cent range.
‘During the year, we continued to successfully capitalise on the dynamic outsourcing trends, resulting in another record year of new business wins and continued strong client retention.
‘We have exited nine tail countries to focus on markets with the greatest growth opportunities and our strong cash generation continues to fuel investment in our business through capex and attractive M&A.’
In February, Compass posted organic revenue growth of 24 per cent for its first quarter as the firm told investors it was ‘excited’ about ‘significant growth potential’ across its markets.
At the time, the group also reported that like-for-like volumes were ‘particularly strong’ in business and industry, as employees continued to return to the office and major sporting events.
Blakemore added: ‘We are confident that the focus on our core markets, the ongoing investment in our market-leading offer and our proven processes will support high single-digit organic revenue growth in 2024.
‘Going forward, we expect to sustain mid to high single-digit organic revenue growth and ongoing margin progression leading to profit growth ahead of revenue growth and increased cash generation.’
Compass Group shares were down 5.07 per cent to 1,986.00p in Monday morning trading.
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