Compass Group PLC on Thursday said organic revenue grew in the first quarter as the company reiterated its full-year guidance.

The Chertsey, England-based contract food service company said organic revenue grew by 24% in the first quarter to December 31, compared with revenue growth of 39% in the first quarter of financial 2021.

Compass noted that it continues to benefit from strong outsourcing trends, reporting net new business growth of 5.5% in the first quarter - above its historical rate of about 3%, and in line with financial 2022’s net new business growth of 5.7%.

The company said business & industry volumes were strong in the first quarter, as employees return to the office, and in sports & leisure due to high participation rates.

Organic growth was 23% in North America, 26% in Europe and 27% in the rest of the world, the company said, with between 5% and 6% net new business growth in all regions, and double-digit like-for-like volume increases across all regions.

The company added that net expenditure on bolt-on acquisitions was £55 million in the first quarter, expanding its brand portfolio and digital and procurement capabilities.

Compass said: ‘We remain positive for financial 2023 and reiterate our guidance. We expect operating profit growth above 20% on a constant currency basis, organic revenue growth of around 15%, weighted towards the first half of the year, and an underlying operating margin above 6.5%.

‘Looking further ahead, we remain excited about the significant structural growth opportunities globally, leading to the potential for revenue and profit growth above historical rates, returning margin to pre-pandemic levels and rewarding shareholders with further returns.’

The company added that it has completed £163 million of the £250 million share buyback programme announced in November.

Compass shares were up 0.3% trading at 1,893.00 pence per share on Thursday morning in London.

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