Sodexo under pressure in Paris, disappoints with 2025 guidance cut

( Il Sole 24 Ore Radiocor ) - Sodexo is under pressure on the Paris Stock Exchange, where the downsizing of its 2025 guidance has had the better of market sentiment over better-than-expected third-quarter revenues. The collective catering services group's stock is down 1.4% at mid-session to 51.45 euros. Sodexo reported third-quarter revenues of 6.12 billion euros , with organic growth of 3% and historical growth of 0.8%, slightly above analysts' average forecasts. In North America, revenues totaled 2.87 billion (+1.2% organic), in Europe they increased by 3.3% to 2.17 billion and in the rest of the world the increase was 7.5% to 1.07 billion. The currency effect is negative by 2.1 percentage points.

"Our organic growth in the third quarter is in line with our expectations and reflects the continuation of recent momentum," commented President and CEO Sophie Bellon , who represents the family of founders and major shareholders of the company (with approximately 43% of the capital and 58% of the voting rights). "The 2025 fiscal year is expected to land at the lower end of the guidance range," she added in a press release. The latter, lowered in March, currently calls for organic revenue growth of between 3% and 4% and an improvement in adjusted operating profit margin of 10-20 basis points at constant currencies. The company's guidance "implies a deterioration in organic growth in the fourth quarter and a lower-than-consensus exit rate (from the fiscal year) for next year," commented Jefferies analysts.

Regarding the slowdown observed in North America, CFO Sebastien de Tramasure explained during a press conference that the slowdown in growth is due to " slightly disappointing commercial performance " in the schools sector and also in universities, a sector in which the client portfolio has recorded enrollments slightly below expectations. As for the possible impacts of US President Donald Trump's policies , the CFO said that cuts in federal aid and subsidies could have repercussions on the group's university and healthcare segments. "For now, we have not noticed any impact on our business, but the fact remains that this climate of uncertainty is never positive," added the CFO, specifying that the company "will monitor the evolution of the situation in the United States very carefully."