Sodexo has announced a strong performance for the third quarter of Fiscal 2024.
Highlights:
- Organic revenue growth of +6.8%, driven by continued strength in Food Services (+8.6%) and Facilities Management (+3.5%).
- Full-year guidance confirmed: Organic growth expected at the top of the +6% to +8% range, with underlying operating profit margin improvement of +30 to +40 basis points at constant currencies.
- Creation of a Board-level Sustainability Committee to solidify Sodexo’s commitment to ethical and sustainable practices.
Solid Growth Across Business Lines
Sodexo’s Q3 performance reflects continued momentum, with organic revenue exceeding expectations. Food Services maintained its strong trajectory with +8.6% growth, fueled by new business wins, innovative offerings, and the ramp-up of new operating models. Facilities Management experienced steady growth of +3.5%, demonstrating resilience despite a slowdown in pricing impact.
North America led the pack with +9.0% organic growth, driven by the return to office trends and robust performance in airline lounges. Europe followed closely with +5.4% growth, supported by volume increases and new business contributions. Rest of the World recorded +3.6% organic growth, with strong results in India and Australia offset by a slowdown in China and Chile.
Sodexo further emphasised its commitment to sustainability by announcing the creation of a Board-level Sustainability Committee. This committee will oversee and guide the company’s sustainability initiatives, ensuring alignment with long-term business goals and stakeholder expectations.
Sodexo’s Q3 results reinforce the company’s positive outlook for Fiscal 2024. With strong momentum across its businesses, Sodexo is well-positioned to achieve its guidance and solidify its position as a global leader in food service and facilities management with a strong commitment to social responsibility.
Sophie Bellon, Sodexo Chairwoman and CEO, said: “We have continued to deliver solid organic growth of +6.8% in the third quarter, up +8.6% in Food services and +3.5% in FM services. This performance is in line with our expectations, allowing us to confirm our full year guidance.
“Our commercial momentum in Food services remains strong, driven by continued first-time outsourcing opportunities, the ramp-up of new operating models and the quality of our branded offers.
“Our strategic initiatives are delivering results as we advance with our focus on tasty, healthy, and sustainable food offerings, strong digital features to enhance consumer experience, and increased selectivity in FM.
“As we complete our final preparations to open the largest restaurant in the world, the teams are excited to showcase our sustainable culinary expertise and contribute to making the Paris 2024 Olympic and Paralympic Games a memorable event!
“We are decisively progressing towards our ambition to be the world leader in sustainable food and valued experiences.”
