Sodexo Reports 1.8% Organic Growth for Its First Quarter of 2026
Sodexo, the group specializing in collective catering, recorded an organic revenue growth of 1.8% in the first quarter of fiscal year 2026, according to the press release issued this Wednesday. The company maintains its annual outlook despite a significant decline in North America.
Quarterly Financial Performance
Sodexo's consolidated revenue for the first quarter of fiscal year 2026 amounted to 6.3 billion euros, a decrease of 2.2% in reported figures compared to the same period of the previous year, the group reports. This decline is primarily due to a negative currency effect of 4.0%, linked to the depreciation of the US dollar against the euro. Excluding currency effects, organic growth was 1.8%. Acquisitions and divestitures had a negligible impact during the period. Performance varied significantly by region. North America showed a negative organic growth of 1.5%, hampered by previous contract losses in the Education and Corporate & Administration segments, as well as a high comparison base for Sodexo Live!, related to an exceptionally high level of event activity the previous year. These factors were partially offset by the opening of new contracts in the Health sector in recent months, the release specifies.
Regional Growth Dynamics
In Europe, organic growth reached 2.4%, driven by new contracts in the Corporate & Administration and Health segments, according to the company. This growth offsets a high comparison base for Sodexo Live!, related to the previous year's Paralympic Games, as well as contract exits in Education. The revenue for this region amounted to 2.3 billion euros. In the Rest of the World, organic growth was 10.2%, supported by strong performances in Australia, India, Brazil, and Chile. The group attributes this momentum to both new contracts and the solid performance of existing contracts in promising markets. The revenue for this region reached 1.1 billion euros for the quarter.
Outlook for Fiscal Year 2026
Sodexo maintains its forecasts for fiscal year 2026, expecting organic revenue growth of between 1.5% and 2.5%, reflecting a contribution of at least 2% related to price increases, the release indicates. The group anticipates a neutral to moderate contribution from comparable volumes and net business development, as well as an accounting reclassification related to the renewal of a significant contract. The operating margin is expected to be slightly lower than in fiscal 2025, due to the growth mix and targeted investments aimed at strengthening the group's foundations. Thierry Delaporte, CEO since November, has taken direct supervision of North America to enhance execution and accelerate performance in this region, the company notes. Investments in technology, sales, supply management, and shared service centers are progressing according to the established schedule. The previously announced acquisition of Grupo Mediterránea is expected to be finalized in the coming months, subject to regulatory approvals.
