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Sodexo Reports Steady Growth and Strategic Transition

Sodexo Reports Steady Growth and Strategic Transition

Sodexo SA Sponsored ADR ( (SDXAY) ) has released its Q4 earnings. Here is a breakdown of the information Sodexo SA Sponsored ADR presented to its investors.

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Sodexo SA, a global leader in food and services, operates across 43 countries, serving 80 million consumers daily. The company is known for its commitment to improving quality of life and contributing to economic, social, and environmental progress.

In its fiscal 2025 earnings report, Sodexo reported a 3.3% organic revenue growth, reaching 24.1 billion euros. The company also announced a 4.7% underlying operating profit margin and a net profit of 785 million euros, reflecting a 3.7% increase at constant currencies.

Key financial highlights include a solid free cash flow of 459 million euros and a net debt/EBITDA ratio of 1.8x. The company proposed a dividend of 2.70 euros per share. Sodexo’s performance was driven by strong growth in the Rest of the World, particularly in India, Australia, and Brazil, while North America and Europe showed moderate growth.

Looking ahead, Sodexo anticipates fiscal 2026 to be a transition year with organic revenue growth projected between 1.5% and 2.5%. The company plans to focus on addressing operational challenges and enhancing its foundations for long-term growth under new CEO Thierry Delaporte.

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