By Kyle Morris

Compass Group PLC said Tuesday that it was raising its fiscal 2022 organic revenue growth guidance due to the significant acceleration in growth and continuing recovery of its base business.

The U.K. catering contractor increased fiscal 2022 organic revenue growth guidance from around 30% to around 35%. It confirmed the fiscal 2022 operating margin guidance of more than 6% and now expects the exit margin to moderate from around 7% due to the net new performance and inflationary pressures.

The FTSE 100 company said third-quarter organic revenue growth was 43.4%, an acceleration from 37.9% at the half year.

The underlying operating margin was up from 5.8% at the half year to 6.2% for the third quarter.

Business & Industry is now trading above its 2019 level on a run-rate basis, it added.

Net M&A totaled 223 million pounds ($268.6 million) year to date as it expanded the portfolio of brands, focused on digital innovation and delivered-in solutions.

Organic growth for fiscal 2022 to Sept. 30 is forecast at 30.4% with an adjusted earnings before interest and taxes margin of 6.2%.

Write to Kyle Morris at kyle.morris@dowjones.com

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(END) Dow Jones Newswires

July 26, 2022 02:32 ET (06:32 GMT)

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