The French caterer lifted its forecast to 1.2%-1.5% from 0.5%-1% after third-quarter revenue of €6.17 billion beat a company-compiled consensus, helped by strong demand at Sodexo Live! North America.
Sodexo raised its full-year organic revenue growth forecast after stronger-than-expected third-quarter trading, with sales supported by robust activity in its sports, leisure, hospitality and events business. The French food caterer now expects organic revenue growth of 1.2% to 1.5%, up from its earlier 0.5% to 1% outlook. Third-quarter revenue rose 2% to €6.17 billion ($7.03 billion), exceeding the €6.04 billion expected in a company-compiled consensus. The improved performance came after the group cut its sales forecast in April from the 1.5%-2.5% organic growth range it had set at the start of the fiscal year. CEO Thierry Delaporte said the company mitigated several risks by capturing opportunities across its portfolio, particularly at Sodexo Live! North America. That division, which focuses on sport, leisure, hospitality and events, benefited from high activity across stadiums, conference centers and airport lounges, supported by strong attendance and consumer spending. The momentum helped offset earlier contract losses in Sodexo's Education business and a 2.5% negative currency impact, mainly from the depreciation of the U.S. dollar.