Turismo
Sodexo Q3 Fiscal 2025 revenues in line with expectations
Issy-les-Moulineaux, July 1, 2025 (7am)
Sodexo (Euronext Paris FR 0000121220-OTC: SDXAY)
Q3 FISCAL 2025 REVENUES
Commenting on the third quarter activity, Sophie Bellon, Sodexo Chairwoman and CEO, said:
"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."
Highlights of the period
Outlook
As a reminder, our expectation for Fiscal 2025 is:
With improved visibility on recent business trends, expectation is to land towards the lower end of the range for both organic growth and underlying operating margin.
Conference call
Sodexo will hold a conference call (in English) today at 9:00 a.m. (Paris time), 8:00 a.m. (London time) to comment on its Q3 Fiscal 2025 revenues.
Those who wish to connect:
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
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 SBT 1.5, FTSE 4 Good and DJSI indices.
Key figures
Q3 Fiscal 2025 Activity Report
In the third quarter Fiscal 2025, Sodexo revenues reached 6.1 billion euros , up +0.8% year-on-year including a negative currency impact of -2.1% - mainly from the depreciation of the US dollar and several Latin American currencies - and a net contribution from acquisitions and disposals of -0.2%.
Consequently, organic growth for the third quarter Fiscal 2025 was +3.0%, in line with expectations.
North America
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In the third quarter Fiscal 2025, North America revenues totaled 2.9 billion euros , up +1.2% organically.
Within Business & Administrations, organic growth reached +1.7%, driven by stronger new business contribution. This was, however, offset by the impact of contracts demobilization, including the full impact from the loss of a major global FM contract last year.
Sodexo Live! organic growth was +3.9%, fueled by strong activity in airline lounges benefiting from higher passenger counts, despite fewer events during the quarter.
Healthcare & Seniors organic growth was -0.1%, impacted by site losses in Canada and in Seniors, and a slow ramp-up of new business in Healthcare despite strong commercial momentum. This was partially offset by price revisions, cross-sell and increased volumes on existing contracts.
In Education, organic revenue growth was +1.0%, improving from the prior quarter thanks to a favorable calendar shift and additional Campus events. Performance continued to be held back by contract exits linked to prior-period losses.
Europe
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In Europe , third quarter Fiscal 2025 revenues amounted to 2.2 billion euros , up +3.3% organically.
In Business & Administrations , organic growth was +1.0%, supported by price revisions and new site openings. These gains were partially offset by softer activity levels and the impact of contract exits.
Sodexo Live! organic growth was up +15.7%, driven by high volumes in Airport Lounges and Stadiums in the UK, and strong tourist activity in France.
Healthcare & Seniors organic growth stood at +7.4%, driven by strong commercial momentum across the region, with a significant contribution of new business in France and Belgium particularly.
Education organic revenue growth was +0.3%, reflecting the positive impact of price revisions, partly offset by the exit in the previous year of some low performing contracts in France.
Rest of the World
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Rest of the World third quarter Fiscal 2025 revenues totaled 1.1 billion euros , up +7.5% organically.
Business & Administrations organic growth was +6.1%. Growth remained particularly strong in India, driven by new business and increased volumes at existing sites, in Australia, supported by additional volumes and robust development, and in Brazil, fueled by price revisions and extra volumes.
Sodexo Live! organic growth was +20.2% (principally airline lounges), benefiting from new lounges openings and strong passenger traffic.
Healthcare & Seniors organic growth was +21.5%, with strong growth in India and Chile.
Education organic growth was +8.9%, fueled by increased volumes and ramp-ups in existing sites in Brazil and India.
CURRENCY EFFECTS
Exchange rate fluctuations do not generate operational risks because each subsidiary bills its revenues and incurs its expenses in the same currency.
The negative currency impact for third quarter Fiscal 2025 of -2.1% is primarily due to the depreciation of the US dollar against the euro since the beginning of the year. Additionally, the depreciation of several Latin American currencies, particularly the Brazilian real, further contributed to the impact. This was partially offset by the appreciation of the British pound.
The currency effect is determined by applying the previous year’s average exchange rates to the current year figures.
FINANCIAL POSITION
Apart from the seasonal changes in working capital, there were no material changes in the Group's financial position as of May 31, 2025, relative to that presented in the Fiscal 2024 Universal Registration Document filed with the AMF on November 5, 2024.
PRINCIPAL RISKS AND UNCERTAINTIES
There were no significant changes to the principal risks and uncertainties identified by the Group in the Risk Factors section of the Fiscal 2024 Universal Registration Document filed with the AMF on November 5, 2024.
ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS
Growth excluding currency effect
The currency effect is determined by applying the previous year’s average exchange rates to the current year figures except in hyper-inflationary economies where all figures are converted at the latest closing rate for both periods when the impact is significant.
For Türkiye, despite being in hyperinflation, the average exchange rates of the previous period are used due to the lack of materiality.
Organic growth
Organic growth corresponds to the increase in revenue for a given period (the “current period”) compared to the revenue reported for the same period of the prior fiscal year, calculated using the exchange rate for the prior fiscal year; and excluding the impact of business acquisitions (or gain of control) and divestments, as follows:
Underlying operating profit margin
The Underlying operating profit margin corresponds to Underlying operating profit divided by revenues.
Underlying operating profit margin at constant rates
The Underlying operating profit margin at constant rates corresponds to Underlying operating profit divided by revenues, calculated by converting 2025 figures at Fiscal 2024 rates, except for countries with hyperinflationary economies.
Inter-segment restatements
Some contracts or operations have been reallocated between segments, with main impacts in North America between Healthcare Seniors and Business & Administrations.
Restated revenue breakdown for Fiscal 2024:
REVENUE FOR THE FIRST 9 MONTHS FISCAL 2025
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CURRENCY EFFECTS FOR THE FIRST 9 MONTHS FISCAL 2025
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