Sodexo, the catering and services group, maintains its 2025 outlook despite a "moderate start to the year," with revenue rising by 1.9% to €6.4 billion, according to a statement released on Tuesday.
"In the first quarter, we recorded organic growth (at constant exchange rates and scope) of 4.6%, marking a moderate start to the year as expected," said Sodexo CEO Sophie Bellon.
"In line with our expectations of modest growth in the first half of the year and an acceleration in the second half, supported by the calendar of new contract contributions, we are determined to meet our annual objectives," added Bellon.
For the 2025 fiscal year, Sodexo forecasts "organic revenue growth between +5.5% and +6.5%" and "an operating margin growth of 30 to 40 basis points (equivalent to 0.3 to 0.4 percentage points) at constant rates."
"A portion of the organic growth is driven by price increases, currently around 3% for the quarter," noted the group.
All geographical regions are progressing, but Europe is experiencing a slowdown compared to previous quarters, mainly due to weaker activity in continental Europe, impacted by contract losses and reduced one-off projects.
Sales in North America are buoyed by solid growth from Sodexo Live! (dedicated to sports and events), spurred by new contracts, strong activity in airline lounges, convention centres, and stadiums, as well as corporate services supported by increased attendance and new site openings.
Revenue from the "rest of the world" region benefits from strong growth in India, Brazil, and Australia.
