Sodexo Q3 Fiscal 2025 revenues in line with expectations

•  Revenues - Third quarter Fiscal 2025 consolidated revenues reached 6.1 billion euros, up +0.8% year-on-year including a negative currency impact of -2.1%, a net contribution from acquisitions and disposals of -0.2% and Organic revenue growth of +3.0%.
• By geography:
  • North America delivered organic growth of +1.2%, slightly above the prior quarter, reflecting continued pricing momentum just below 3% and contributions from new business. These were offset by impacts from contract exits linked to prior-period losses, including a major global FM contract and some Education sites.
  • Europe grew +3.3% organically, an improvement versus prior quarter, driven by solid momentum in Healthcare & Seniors, strong activity in Sodexo Live!, as well as successful mobilization of major contracts in France and in the UK. These positive dynamics were partially tempered by softer trends in Corporate Services and Education.
  • Rest of the World grew +7.5% organically, driven by continued strong performance in India, Brazil, and Australia which stands out thanks to robust commercial traction.
• Financing - On May 27, 2025, Sodexo Inc, the U.S. subsidiary of Sodexo S.A. successfully completed a U.S. dollar notes issuance for a total principal amount of $1.1 billion in two tranches: $600 million due August 2030, with a 5.150% coupon and $500 million due August 2035, with a 5.800% coupon. A portion of the net proceeds was used to fund the repurchase of Sodexo Inc.'s existing 1.634% senior notes due 2026.
• M&A - On April 30, 2025, Entegra Procurement Services, a subsidiary of Sodexo and a global leader in performance and procurement optimization for hospitality professionals, completed the acquisition of Agap'pro, a well-established group purchasing organization in the French market. This acquisition reinforces its position as a key player in procurement performance for hospitality venues.
• Sustainability - Sodexo received an A- score from CDP for its climate change disclosure and action - the highest rating in its sector, recognizing its continued leadership in environmental responsibility and commitment to transparent and sustainable practices.
• Health & Safety - Through its Have a Safe Day Awards, Sodexo recognizes teams worldwide that embed safety into their daily culture. This year, three initiatives from Australia, Chile, and Brazil were honored for their outstanding safety leadership and employee engagement.

As a reminder, our expectation for Fiscal 2025 is:

• Organic revenue growth between +3% and +4%
• Underlying operating profit margin improvement between +10 and +20 bps, at constant currencies

With improved visibility on recent business trends, expectation is to land towards the lower end of the range for both organic growth and underlying operating margin.

Sodexo will hold a conference call (in English) today at 9:00 a.m. (Paris time), 8:00 a.m. (London time) to comment on its Q3 Fiscal 2025 revenues.

Those who wish to connect:

• From the UK: +44 121 281 8004, or
• From France: +33 1 70 91 87 04, or
• From the US: +1 718 705 8796,

Followed by the access code 07 26 13.

The live audio webcast will be available on www.sodexo.com