LONDON (dpa-AFX) - Compass Group PLC (CPG.L, CMPGF), a contract foodservice company, on Tuesday reported third-quarter organic revenue growth of 7.1 percent from last year. Looking ahead, the company said it remains on track to deliver net new growth at this level, and maintained outlook for fiscal 2026.
In its trading update for the third quarter ended June 30, the company reported that organic revenue growth in North America was 7.5 percent year-over-year, and in International region was 6.4 percent.
Like-for-like growth was in line with expectations, with volumes in North America benefiting modestly from the Football World Cup. International like-for-like growth moderated, reflecting lower inflation and Sports & Leisure calendar timings.
Net new business growth accelerated into its 4 percent to 5 percent target range as expected.
Client retention remained at 96 percent, and the firm said its pipeline of opportunities continues to support confidence in future growth.
For the year-to-date period, organic revenue grew 7.2 percent year-over-year, with 7.3 percent rise in North America and 6.9 percent growth in Inernational region.
Over the last 12 months, the firm secured $4.3 billion of new business wins, up 16 percent year-on-year, with 50 percent of new business wins from first time outsourcing.
Looking ahead for fiscal 2026, Compass Group said it continues to expect underlying operating profit growth of above 11 percent in constant currency with strong execution and continued growth momentum.
The company still projects around 7 percent organic revenue growth and ongoing margin progression
Dominic Blakemore, CEO of Compass Group, said, 'Our business continues to perform strongly, driven by the strength of our sector-focused model, disciplined execution and resilient client demand. We are winning market share across multiple sectors, supported by the strongest pipeline of opportunities we have ever seen. With an addressable market exceeding $360bn and significant opportunities to further increase penetration, we remain confident in delivering another year of strong earnings growth and continued margin progression.'
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