Contract caterer Compass expects 2023 profit growth to top 20% - Reuters

Nov 21 (Reuters) - Contract caterer Compass Group (CPG.L) connected Monday forecast its nett maturation to beryllium much than 20% successful 2023 and margins to beryllium supra 6.5%, aft reporting a surge successful fiscal twelvemonth 2022 nett buoyed by caller concern wins and reopening of economies.

The world's largest catering radical much than doubled its dividend to 31.5 pence for the twelvemonth ended Sept. 30 and announced a caller stock buyback of 250 cardinal pounds ($295.25 million) aft gross and nett bushed marketplace expectations.

Like different businesses, Compass has been grappling with higher costs of nutrient and labour, and has been tackling soaring ostentation by changing ingredients specified switching from sunflower lipid to rapeseed lipid successful the UK and reducing the fig of options its paper offers, among different things, to chopped costs.

A challenging economical situation and fears of a recession has besides meant that much companies are outsourcing their canteen needs to chopped costs, helping Compass summation much caller businesses and clasp clients.

Compass, which serves bureau workers, assemblage students, patients and seniors successful aged property homes crossed 40 countries, said adjusted operating nett soared astir 88% to 1.59 cardinal pounds successful the twelvemonth ended Sept. 30.

That bushed the company-compiled analysts' estimation of 1.54 cardinal pounds.

Adjusted operating borderline was astatine 6.2%, a tad higher than the company-compiled statement of 6.1%.

Constant-currency underlying operating nett maturation is expected to beryllium supra 20% for fiscal twelvemonth 2023, Compass said.

Underlying gross for the twelvemonth roseate astir 38% to 25.8 cardinal pounds, surpassing pre-pandemic levels, and analysts mean forecast of 25.1 cardinal pounds.

($1 = 0.8467 pounds)

Reporting by Yadarisa Shabong; Editing by Savio D'Souza and Rashmi Aich

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