Half Year 2025 Sodexo SA Earnings Call Transcript
Key Points
- Sodexo (SDXAY) secured over EUR1 billion in new contracts during the first half, indicating strong business development momentum.
- The company achieved a 3.5% organic revenue growth in the first half, with food services outperforming at 4.5% organic growth.
- Sodexo (SDXAY) maintained a retention rate of 93.9%, with a target to reach between 94% and 94.5% for the full year.
- The company is making progress in cost management, with its Global Business Services project delivering around EUR10 million in savings this year.
- Sodexo (SDXAY) reported a 6.4% increase in underlying operating profit, with a 10 basis point margin improvement.
- Sodexo (SDXAY) revised its full-year guidance due to a lower-than-expected pace of growth, particularly in North America.
- The company faced delays in the ramp-up of new healthcare contracts, contributing to a 90 basis points drag on growth.
- Net new contributions in North America were weaker than expected, with some large contracts only starting to contribute in fiscal year '26.
- The education segment experienced a 60 basis points impact due to lower-than-expected volume growth and weather-related school closures.
- Sodexo (SDXAY) faced retention pressure in corporate services, contributing to a 50 basis points impact in North America.
Good morning. Thank you for standing by, and welcome to Sodexo's first half fiscal 2025 results conference call. (Operator Instructions) I advise that this conference is being recorded today, Friday on the April 4, 2025.
I would now like to hand the conference over to the Sodexo team. Please go ahead.
Good morning, everyone. Thank you for joining us today. I'm Juliette Klein, Head of Investor Relations, and I'm pleased to welcome you on our H1 fiscal 2025 results call.
On the call today is Chairwoman and CEO, Sophie Bellon; and CFO, Sebastien De Tramasure, to take us through the presentation. After their remarks, we'll open the line for questions. We ask you to please limit yourselves to two questions and one follow up. The press release is available on sodexo.com. Please note that this call is being recorded and may not be shared without our consent.
Just a reminder that our next announcement will be the Q3 figures on July 1. Please reach out to the IR team if you have any
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