CMPGY Compass Group PLC (PK)

By Michael Susin

Compass Group reported a weaker-than-expected increase in pretax profit for fiscal 2023, but raised its dividend payout.

The U.K. catering contractor on Monday reported pretax profit of 1.75 billion pounds ($2.18 billion) for the year ended Sept. 30 compared with GBP1.47 billion a year earlier. This compares with a consensus forecast of GBP1.84 billion taken from FactSet and based on nine analysts' estimates.

Revenue rose to GBP31.03 billion from GBP25.5 billion, reflecting a robust trading performance and favorable exchange rates. However, it missed a company-provided market estimate of GBP31.2 billion.

Underlying operating profit--which strips out exceptional and other one-off items--came in at GBP2.12 billion from GBP1.59 billion while the underlying margin was 6.8% compared with 6.2%, both in line with the company-compiled market estimate.

The board raised its dividend to 43.1 pence a share from 31.5 pence.

Looking ahead, Compass expects underlying operating profit growth toward 13% for fiscal 2024, delivered through high single-digit organic revenue growth and margin progression.

"The business is in great shape operationally and financially and well positioned for a more focused growth phase. Despite some macroeconomic uncertainty, favorable market dynamics continue and, with a global market share of less than 15% and around 50% of the market still self-operated, we have an exciting structural growth opportunity," Chief Executive Dominic Blakemore said.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

November 20, 2023 02:33 ET (07:33 GMT)

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