Sodexo Lowers Full-Year Comparable Revenue Growth Forecast

Sodexo, a French facilities management, catering and vouchers group, cut its full-year forecast for sales growth after weaker-than-expected sales performance in the third quarter. Revenue in the nine months to May 31 was 15.98 billion euros ($18.1 billion) compared with 15.71 billion euros in the same period of 2016, the company, whose clients include Unilever, Royal Dutch Shell and Coca-Cola, said on its website on Thursday. On a comparable basis revenue increased 0.5% falling behind analyst expectations of 1.2% growth in a Reuters poll. Revenue growth figures excluded the Rugby World Cup, which boosted sales in the same period in 2016, the company said.

The company’s on-site services business posted positive growth at 0.3% in the nine-month period as the impact of the Rugby World Cup on the basis of comparison is fading. Even so, this reflects a lower-than-expected third-quarter performance, at 1.3% growth as a result of lower than anticipated activity in health care and universities in North America and continued weakness in corporate services in Europe . This offset better performance in other business segments, such as energy and resources, and geographies such as Asia and Latin America, in particular Brazil.

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