Issy-les-Moulineaux, March 20, 2025 (7am) Sodexo (Euronext Paris FR 0000121220-OTC: SDXAY)
Sodexo First half Fiscal 2025 estimates and full year guidance update
First half Organic revenue growth of +3.5%
First half Underlying operating profit up +6.4% at constant currencies, margin up +10bps
Update to full year guidance mainly triggered by slower than expected organic growth in North America :
Organic revenue growth between +3% and +4% (from between +5.5% and +6.5%)
Underlying operating profit margin improvement between +10 to + 20 bps, at constant currencies (from +30 to +40 bps)
First half Fiscal 2025 key figures - unaudited1
(in million euros)
H1 FISCAL 2025
H1 FISCAL 2024
DIFFERENCE
DIFFERENCE CONSTANT RATES
Revenues
12,475
12,101
+3.1%
+3.2%
Organic revenue growth
+3.5%
+8.5%
UNDERLYING OPERATING PROFIT
651
612
+6.4%
+6.4%
UNDERLYING OPERATING PROFIT MARGIN
5.2%
5.1%
+10bps
+10bps
Other operating income & expenses
(71)
30
OPERATING PROFIT
580
642
(9.7%)
(10.0%)
Net financial expense
(40)
(46)
Tax charge
(105)
(99)
Effective tax rate
19.5%
16.6%
NET PROFIT FROM CONTINUING OPERATIONS
434
496
(12.5%)
(12.7%)
UNDERLYING NET PROFIT FROM CONTINUING OPERATIONS
450
427
+5.4%
+5.2%
Basic underlying EPS from continuing operations (in euros)
3.08
2.91
Sodexo Chairwoman and CEO, Sophie Bellon, said:
“While our industry fundamentals remain strong, in North America the continued soft trend in volumes in Education and slower than expected net new ramp-up in Healthcare have impacted our ability to meet initial expectations. We are determined to strengthen execution on identified areas where improvement is required. We continue to see significant opportunities in a highly attractive market, and we are investing in the future to grow faster. We are confident in our ability to create sustainable value for our stakeholders.”
H1 Fiscal 2025 highlights
First half Fiscal 2025 consolidated revenues reached 12.5 billion euros, up +3.1% year-on year including a negative currency impact of -0.1% and a net contribution from acquisitions and disposals of -0.3%. Organic revenue growth was +3.5%.
In North America, Organic growth was +3.5%, lower than expected, with Education affected by the continuation of soft volumes, and Healthcare by delays in the opening of new contracts, meanwhile Business & Administrations and Sodexo Live! demonstrated good organic growth.
Europe was up +2.1% organically, with good performance in Healthcare & Seniors but continued soft growth in Facilities Management.
In Rest of the World, Organic growth was +6.6%, fueled by strong performance in Australia, India and Brazil.
REVENUES (in million euros)
H1 FY 2025
H1 FY 2024
ORGANIC GROWTH
EXTERNAL GROWTH
CURRENCY EFFECT
TOTAL GROWTH
North America
5,977
5,756
+3.5%
-0.6%
+1.0%
+3.8%
Europe
4,336
4,254
+2.1%
-0.8%
+0.7%
+1.9%
Rest of the World
2,162
2,091
+6.6%
+1.5%
-4.7%
+3.4%
SODEXO
12,475
12,101
+3.5%
-0.3%
-0.1%
+3.1%
During First half Fiscal 2025, last-12-months (LTM) client retention stood at 93.9% with a development of 7.3%.
Underlying operating profit in the First half was 651 million euros, up +6.4%. The Underlying operating margin improved +10 basis points at 5.2%, with good improvement in North America despite the revenue shortfall, and softer improvement in Europe, specifically in Corporate services, and in Rest of the World due to some operational challenges in a couple of contracts in Latin America.
(in million euros)
UNDERLYING OPERATING PROFIT H1 FISCAL 2025
DIFFERENCE
DIFFERENCE (EXCLUDING CURRENCY EFFECT)
UNDERLYING OPERATING PROFIT MARGIN H1 FISCAL 2025
DIFFERENCE IN MARGIN
DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT)
Organic revenue growth guidance revised to between +3% and +4% (from +5.5% to +6.5% in the initial guidance)
Underlying operating margin YoY improvement guidance revised to +10 to +20 bps (from +30 to +40 bps in the initial guidance)
Our adjustment to the full-year organic revenue growth guidance is primarily driven by weaker-than-expected volume trends in Education in the First half, which are expected to persist. Additionally, in North America, delays in certain contracts start dates in Healthcare, and softer commercial performance in the First half have impacted expectations for net new contributions in the second half.
Similarly, the revision of the Underlying operating margin guidance mainly reflects the full-year impact of the revenue shortfall.
Sodexo is strengthening execution on identified areas where improvement is required, with a particular focus on North America towards commercial discipline and operational execution, as well as global organizational efficiency and strict overhead cost control.
Further details will be provided in the upcoming H1 results announcement, scheduled for April 4th, 2025.
Conference call
Sodexo will hold a conference call (in English) today at 8:30 a.m. (Paris time), 7:30 a.m. (London time) to comment on this release.
Those who wish to connect:
From the UK: +44 121 281 8004, or
From France: +33 1 70 91 87 04, or
From the US: +1 718 705 8796,
Followed by the access code 07 26 13.
The live audio webcast will be available on www.sodexo.com
The press release, presentation and webcast will be available on the Group website www.sodexo.com in both the “Newsroom” section and the “Investors – Financial Results” section.
Financial calendar
Fiscal 2025 First half Results
April 4, 2025
Fiscal 2025 Third quarter Revenues
July 1, 2025
Fiscal 2025 Annual Results
October 24, 2025
These dates are indicative and may be subject to change without notice. Regular updates are available in the calendar on our website www.sodexo.com
About Sodexo
Founded in Marseille in 1966 by Pierre Bellon, Sodexo is the global leader in sustainable food and valued experiences at every moment in life: learn, work, heal and play. The Group stands out for its independence, its founding family shareholding and its responsible business model. Thanks to its two activities of Food and Facilities Management Services, Sodexo meets all the challenges of everyday life with a dual goal: to improve the quality of life of our employees and those we serve, and contribute to the economic, social and environmental progress in the communities where we operate. For Sodexo, growth and social commitment go hand in hand. Our purpose is to create a better everyday for everyone to build a better life for all.
Sodexo is included in the CAC Next 20, Bloomberg France 40, CAC 40 ESG, CAC SBT 1.5, FTSE 4 Good and DJSI indices.
1 Sodexo's Board of Directors met on March 19, 2025, reviewed the financial data for the first half of Fiscal 2025 and reviewed this press release. These financial data are preliminary, the financial results for the first half of Fiscal 2025 will be approved by the Board of Directors on April 3, 2025. The limited review procedures by the Statutory Auditors are ongoing.
