Sodexo Reports Q3 Fiscal 2025 Revenues Reflecting Steady Growth

Sodexo, a global leader in food services and facilities management, reported consolidated revenues of €6.1 billion for the third quarter of Fiscal 2025, reflecting an organic revenue growth of 3.0%, consistent with the company's expectations. The results indicate a complex landscape of growth dynamics across various regions and service lines, as the company navigates challenges and opportunities in its operational environment.

The organic revenue growth of 3.0% aligns with the company's guidance for Fiscal 2025, which estimates organic growth between 3% and 4%. However, Sodexo's underlying operating profit margin is expected to improve by only 10 to 20 basis points at constant currencies, suggesting a cautious outlook for the remainder of the fiscal year.

Sophie Bellon, Chairwoman and CEO of Sodexo, stated, "Our third quarter organic growth is in line with expectations and reflects the continuation of recent dynamics. We are making steady progress on key contract ramp-ups and benefiting from sustained pricing discipline and business momentum across our core markets. With engaged teams and a clear roadmap, our focus is unwavering on disciplined execution and strengthening client relationships. We are confident in our ability to deliver sustainable growth and create long-term value for all our stakeholders."

**Geographical Performance Metrics** Sodexo's performance varied across geographical regions. In North America, organic growth reached 1.2%, slightly above previous quarters, fueled by continued pricing momentum and contributions from new business. However, this growth was tempered by contract exits from prior-period losses, including significant contracts in the facilities management sector and education services.

Conversely, Europe demonstrated stronger organic growth of 3.3%, bolstered by robust performance in healthcare services and events management through Sodexo Live!. The successful mobilization of major contracts in France and the United Kingdom contributed significantly to this growth, although trends in corporate services and education were softer than expected.

The Rest of the World segment posted an impressive organic growth of 7.5%, driven primarily by solid performance in markets such as India, Brazil, and Australia, showcasing the company’s resilience and adaptability in diverse environments.

**Financial Moves and Sustainability Initiatives** On May 27, 2025, Sodexo Inc., the U.S. subsidiary, successfully completed a U.S. dollar notes issuance totaling $1.1 billion. This issuance included two tranches aimed at refinancing existing debts and funding strategic priorities. This move reflects the company's proactive approach to financial management amid fluctuating market conditions.

Sodexo also reinforced its commitment to sustainability by achieving an A- score from the Carbon Disclosure Project (CDP) for its climate change disclosures, the highest rating in its sector. This recognition underscores the company's dedication to environmental responsibility and sustainability practices across its operations.

**Health and Safety Recognition** In terms of health and safety, Sodexo has established the "Have a Safe Day Awards" to honor teams that prioritize safety in their daily operations. Initiatives from Australia, Chile, and Brazil were highlighted this year for their exemplary safety leadership, demonstrating the company's commitment to employee engagement and safety culture.

**Outlook for Fiscal 2025** Looking ahead, Sodexo maintains its guidance for Fiscal 2025, anticipating organic revenue growth between 3% and 4% and a modest improvement in underlying operating margin. The company emphasizes improved visibility on recent business trends, though it remains cautious about landing at the lower end of its projected range.

A conference call is scheduled today at 9:00 a.m. Paris time, where company officials will discuss the Q3 results and outlook in detail. Stakeholders can access the call via multiple international dial-in options or through a live audio webcast on the official Sodexo website.

In conclusion, while Sodexo's Q3 results indicate steady growth reflecting ongoing demand and operational efficiencies, the company faces challenges in certain markets and service lines that could influence its performance in the near future. With a focus on disciplined execution and strategic partnerships, Sodexo aims to sustain its growth trajectory and enhance value for its stakeholders in the coming fiscal year.