Compass Group, the U.K. catering contractor, has announced that its organic revenue grew by 15% in the third quarter of fiscal year 2023, compared to 25% in the previous half-year. The company's year-to-date organic revenue has increased by 21%, driven by a client retention rate of 96.7%, net new business growth, pricing strategies, and volume growth.
Continuing with its growth strategy, Compass Group plans to focus on bolt-on acquisitions. So far this year, the company has spent £272 million ($348.9 million) on acquisitions and disposals.
The company anticipates that if current currency movements persist for the remainder of the year, it will have a positive impact on revenue and operating profit. Specifically, Compass Group expects revenue to increase by £593 million and operating profit to increase by £43 million.
Looking ahead, Compass Group has reaffirmed its full-year guidance. In the long term, the company predicts mid-to-high single-digit organic growth and a return to its historical margin. This is expected to result in profit growth surpassing revenue growth.