Paris (awp/afp) – The collective catering and services group Sodexo saw its turnover growth slow slightly with inflation, but confirmed its annual objectives on Tuesday thanks in particular to a “robust” development in catering services.
Overall, the company, which will be responsible for catering for athletes in the Olympic Village in Paris, achieved sales in the third quarter of its staggered 2024 financial year up 5.6% year-on-year, to 6.1 billion euros – a figure slightly below the expectations of analysts surveyed by Bloomberg.
Excluding acquisitions and at constant exchange rates, growth – described as “internal” and highlighted by Sodexo – is 6.8%. It is based “around half” on price increases, “which fell below the 4% mark over the quarter”, the group explains in a press release.
“The other half reflects the net contribution of new signings and volume growth,” Sodexo said.
It was driven by the 8.6% growth in catering services, while facilities management services (business services) grew by 3.5%.
However, growth is slowing “compared to the 2nd quarter” due in particular to a deceleration in inflation. The comparison also suffers from a good 3rd quarter last year and “a positive impact of the leap year in the 2nd quarter” of 2024.
Growth is also being hampered by an accounting adjustment, without which sales would increase by 7.2%, the group said.
Over the first nine months of the financial year, sales reached 18.2 billion euros, an increase of 4.8%, or 7.9% excluding exchange rates and changes in scope.
Describing the “commercial dynamics in catering services” as “robust” and citing a performance “in line with our expectations”, the group confirmed its annual objectives.
It expects organic revenue growth “at the top end of the +6% to +8% range” and “an operating margin growth of +30 to +40 basis points, at constant rates.”
This is the second publication after the split of the meal voucher business, which was listed on the stock market under the name “Pluxee” on February 1.
This new independent entity is due to publish its third-quarter sales figures on Wednesday.
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