Modest growth for Sodexo in Fiscal Year 2025

Sodexo has published its results for Fiscal 2025 which it reports are in line with revised guidance.

Financial highlights include:

• Fiscal 2025 consolidated revenues reached €24.1 billion, up +1.2% year-on-year;
• Organic revenue growth of +3.3% (or +3.7% excluding the base effect of the Olympics, the Rugby World Cup and the leap year in Fiscal 2024). In Europe, organic growth was +1.7%, or +2.7% excluding the base effect of the Rugby World Cup and the Olympics, with progress across segments, notably in Healthcare and Seniors;
• Underlying operating profit was €1.1 billion euros, corresponding to an underlying operating margin of 4.7%;
• Underlying group net profit was €785 million.

Client retention for Fiscal 2025 was 94%, reflecting the loss of a large global FM account and weaker performance in the US Education segment.

New signings totalled €1.7 billion, with a strong start to the year followed by a softer second half, partly mitigated by successful cross-selling.

Sodexo states Fiscal 2026 will be a transition year laying foundation for the future. The outlook for organic growth is between +1.5% and +2.5%, while underlying operating profit margin is expected to be slightly lower than Fiscal 2025.

Commenting on the results, Sophie Bellon, Sodexo Chairwoman and CEO said: “Over the past four years, we have repositioned Sodexo as a pure-play food and services company. We have streamlined our portfolio, sharpened our focus on core activities, whilst continuing the transformation of our operating model. These efforts have set a strong foundation for sustainable performance.

“Our Fiscal 2025 results reflect both the progress achieved and the operational challenges we faced, particularly in the U.S. For Fiscal 2026, we remain laser-focused on addressing these challenges, with clear action plans already underway.

“The appointment of Thierry Delaporte as Chief Executive Officer marks the opening of a new chapter for Sodexo, with commercial acceleration and rigorous execution being our key priorities. I am confident that our new governance structure will support the Group’s next stage of development and long-term success.”

Reflecting on the results achieved closer to home over the past 12 months, Jean Renton, CEO for Sodexo UK & Ireland said: “As I look back over the past year, I am immensely proud of what our teams across the UK and Ireland have achieved. Our strong performance is clear in the growth we’ve delivered across all our markets and the continued trust of clients who choose Sodexo for our food-led, integrated services which elevate the workplace experience. We’ve also been recognised externally with a range of awards and accolades, celebrating our delivery of exceptional workplaces and food services, and our commitments as a purpose-led, responsible business. 

“Over the last 12 months, we have welcomed new clients including East Suffolk & North Essex NHS Foundation Trust, BNP Paribas, the Scottish Open and Sevenoaks School. We have also extended valued relationships with BASF, Nuffield Health, Chesterfield Royal Hospital NHS Foundation Trust, Central Bank of Ireland, Millwall Football Club and retained the contracts to continue to manage HMP Forest Bank and the Ministry of Defence’s six military sites on the island of Cyprus.

“Whether in the private sector or as a strategic supplier to Government, we continue to demonstrate how the seamless delivery of food, hospitality and FM services can significantly enhance the employee and consumer experience. As the leading expert self-delivering in these fields, our unique, insight-led proposition attracts clients who want to maximise value creation from a single, trusted partner. 

“Alongside our commercial success, I’m equally proud of the recognition we’ve received for our progress on sharing our Social Impact Pledge to 2030 and the impact we have made since launching the Pledge over 14 years ago. Social impact is embedded into our decision making and this strength of purpose and delivery has been acknowledged at several industry awards this year, one we are particularly proud of is winning the Sustainable Business Award at this year’s prestigious Cateys. This recognition reaffirms our commitment to achieving net zero and driving positive change across our supply chain and communities. These achievements show how purpose and performance go hand in hand at Sodexo. 

“We’ve also been honoured with several industry accolades for operational excellence, reflecting the positive difference we make for our clients every day, including Company of the Year by Chambers Ireland, and recognition across exceptional food service, innovation, and FM delivery, to name a few.  

“This year also marked the 20th anniversary of the Sodexo Stop Hunger Foundation – a moment to reflect on the needs of our communities and how we can best support them. To date we have supported more than 11 million people across the UK and Ireland through food aid, volunteering and fundraising, which totals more than £10m. The Foundation’s work, alongside our ongoing commitments to social mobility and community investment, continues to demonstrate how our scale and purpose can make a tangible difference to people’s lives. 

“At the heart of everything we do are our 30,000 colleagues, who bring innovation, passion and care to every client, guest and community we serve. It’s through their dedication that we continue to deliver exceptional food experiences and workplaces that inspire. That is why we remain resolute in creating a workplace culture where everyone feels they belong, can act with purpose, and are empowered to thrive. 

“As we look ahead, we remain focused on sustainable growth, delivering even greater value for our clients, and creating a better every day for all.”