French catering provider Sodexo has posted an underlying net profit of €785 million ($913.82 million) for the year ended August 31, 2025, an increase of 3.7% at constant exchange rates.
Its underlying earnings per share (EPS) were €5.37 in fiscal 2025.
Underlying operating margin improved to 4.7%, an increase of 10 basis points in constant currency.
Savings from acquisitions and benefits provided by the Global Business Services program supported margin growth and partially offset ongoing growth-related investments.
At constant exchange rates, Europe and the rest of the world saw margin expansion, while they remained unchanged in North America.
Consolidated revenues for the year amounted to €24.1 billion, an increase of 1.2% compared to the previous year.
The 3.3% organic expansion was partially offset by a -1.8% foreign exchange headwind and a -0.3% net effect from acquisitions and disposals.
Other operating income and expenses stood at -€154 million, largely driven by restructuring costs and amortization of acquired intangible assets.
The previous year it benefited from a windfall gain related to the sale of the home care business.
Free cash flow amounted to €459 million and included an exceptional tax outflow linked to the completion of a tax audit.
Working capital was reported to be well contained and capital expenditure amounted to 2% of revenue.
Net debt increased to €2.7 billion from €2.6 billion a year earlier, mainly reflecting exceptional tax outflows.
The company’s governance will change with the appointment of Thierry Delaporte as CEO, effective November 10, 2025.
Looking ahead to fiscal 2026, Sodexo anticipates underlying operating profit margin will be slightly below the level seen in fiscal 2025.
The group projects organic revenue growth of 1.5% to 2.5%, supported by a minimum contribution of 2% from prices and comparable volumes and net new business are expected to contribute neutral to moderately positive.
Management also noted an exceptional reclassification related to the renewal of a major contract.
“Sodexo Posts Increase in Q3 2025” was created and originally published by Verdict Food Service, a brand owned by GlobalData.
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