Catering group Compass Group said it expects 2024 underlying operating profit to grow about 13%, aided by strong demand leading to high single-digit organic revenue growth and stronger margins.
It also announced a further $500m in share buyback, after completing a $750m buyback earlier this month.
Compass, the world's largest catering group, said adjusted operating profit rose nearly 30% to £2.12 billion for the year ended September 30, in line with market expectations.
The company, which provides food catering services to offices, universities and sports stadiums across 40 countries, has benefited from new businesses and high prices, although red-hot food and wage inflation has been a drag on its margins in the past year.
"Going forward, we expect to sustain mid to high single digit organic revenue growth and ongoing margin progression leading to profit growth ahead of revenue growth and increased cash generation," CEO Dominic Blakemore said in a statement.
Compass also announced that after its year end, it bought a German producer of cook and freeze meals, Hofmann Menü-Manufaktur, and exited its small operations in Argentina and Angola.
Annual underlying revenue grew 18.8% to £31.3 billion, registering growth across its markets.
In its financial year 2023, the company signed £2.7 billion of new business, with first-time outsourcing accounting for about 50%.
