Sodexo has reported a 3.1% increase in revenues for the first half (H1) of fiscal 2025 (FY25), reaching €12.5bn ($13.5bn) compared to €12.1bn ($13bn) in the same period of the previous year.
Underlying operating profit also grew 6.4% to €651m from €612m in H1 FY24.
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Sodexo’s underlying operating profit margin improved slightly to 5.2% – 10 basis points from 5.1%.
But despite the increase in underlying operating profit, Sodexo’s operating profit saw a decline of 9.7% to €580m in H1 2025 from €642m in H1 FY24.
Net profit from continuing operations dropped 12.5% to €434m from €496m.
Underlying net profit from continuing operations saw a growth of 5.4% to €450m from €427m in the same half of the year before.
Sodexo has revised its full-year revenue growth guidance to between 3% and 4%, a decrease from the initially forecasted 5.5% to 6.5%.
The expected improvement in the underlying operating margin has also been adjusted to an increase of 10 to 20 basis points, down from the previously anticipated 30 to 40 basis points.
The revision in organic revenue growth is primarily due to weaker-than-expected volume trends in the education sector during H1, which are projected to continue.
Additionally, in North America, delays in the start dates of certain healthcare contracts and softer-than-expected commercial performance in H1 have influenced expectations for net new contributions in H2.
Sodexo chairwoman and CEO Sophie Bellon stated: “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.”
