(Reuters) – Sodexo falls on the stock market Friday after having confirmed a growth of 3.1% of its turnover in the first half and reiterated its financial objectives, the publication of the group’s audited results, after a warning in March, having not reassured investors on its prospects and liquidity.
The catering services group had revised its annual prospects during an estimate of its half -yearly results, anticipating internal growth in turnover between 3% and 4%, and an increase in operating margin between +10 to +20 basic points, at constant rate.
“Two weeks ago, we saw our goals, recognizing that some of our initial hypotheses did not materialize at the expected rate,” the director general of Sodexo, Sophie Bellon, said in a statement on Friday.
“The challenges relate to certain identified subjects, and we strengthen our action plan. We focus in priority on execution, to restore performance on these key subjects and improve predictibility,” she added.
In Paris, around 8:10 a.m. GMT, the share abandoned 4.5% to 55.1 euros for a 1.4% drop in SBF120 at the same time.
The lack of precision on group initiatives or update on medium -term objectives has notably been deplored by Jefferies analysts.
“This would have brought a much necessary visibility and could have served as a compensation event,” they said in a note.
Liquidity pressure
Sodexo also displays liquidity generated by negative operations in the first half, at -234 million euros, down compared to the -102 million euros recorded a year ago and disappointing the expectations of analysts.
This drop is explained by the “exceptional tax payment following the finalization of a tax audit in France”, according to the Sodexo press release.
“The liquidity generated by operations are lower than expected,” writes JP Morgan in a note, stressing that “the action will not (still) be helped by the liquidity generated by disappointing operations in the first half.”
The group also recorded a operating profit down 9.7% to 580 million euros in the first half, and an operating result up 6.4% to 651 million euros.
Sodexo also reports a profit per share of 2.98 euros for the first half of his fiscal year, compared to 3.39 euros for the first half of the year 2024.
(Written by Etienne Breban, edited by Augustin Turpin)
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