Sodexo First half Fiscal 2025 estimates and full year guidance update
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) |
| North America | 422 | +6.8% | +5.6% | 7.1% | +20 bps | +10 bps |
| Europe | 186 | +3.3% | +3.3% | 4.3% | +10 bps | +10 bps |
| Rest of the World | 85 | +6.3% | +12.7% | 3.9% | +10 bps | +20 bps |
| Corporate expenses | (42) | -2.3% | -2.3% | |||
| UNDERLYING OPERATING PROFIT (continuing activities) | 651 | +6.4% | +6.4% | 5.2% | +10 bps | +10 bps |
FY25 Guidance
- 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: 4, or
- From France: 04, or
- From the US: ,
Followed by the access code 07 26 13.
The live audio webcast will be available on
The press release, presentation and webcast will be available on the Group website 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
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.
Key figures
- 23.8 billion euros Fiscal 2024 consolidated revenues
- 423,000 employees as at August 31, 2024
- #1 France-based private employer worldwide
- 45 countries (as of August 31, 2024)
- 80 million consumers served daily
- 10.7 billion euros in market capitalization (as at March 19, 2024)
| Contacts | ||||
| Analysts and Investors | Media | |||
| Juliette Klein 27 | Mathieu Scaravetti 91 | |||
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.
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