Latest news with #SophieBellon
Irish Independent
18-06-2025
- Business
- Irish Independent
Sodexo's Irish arm records pre-tax profit increase of 44pc
Sodexo provides on-site services to clients in business, industry, education, financial, pharma, healthcare and government services. Stock image Pre-tax profits at the Irish arm of services firm Sodexo, which counts the Central Bank as one of its clients, last year increased by 44pc to €4.94m. New accounts filed by the French-owned Sodexo Ireland show the company increased profits as revenues rose by 9pc from €141.4m to €154.7m in the 12 months to the end of August last. Numbers employed by the business last year increased by 127 from 2,205 to 2,332 as staff costs increased by just under 10pc from €74.22m to €81.52m. The principal activities of Sodexo Ireland is the provision of a wide range of on-site support services to both private and public sector organisations in business, industry, education, pharma and healthcare. These include food services, infrastructure, facilities and estate management and optimising the workplace experience. The company recorded an after-tax profit of €4.16m after incurring a corporation tax charge of €778,000. The company paid out a dividend of €2.9m last November. Sodexo Ireland MD David Fox said: 'We have experienced a very positive few years in Ireland, driven by a combination of strong new business wins and key client retentions across both the public and private sectors. 'We continue to see good momentum this year, with organisations increasingly recognising the value of high-quality workplace food and facilities services to support employee experience and operational efficiency. 'Our industry, like others, has challenges such as cost inflation and talent attraction, but our focus every day is on delivering great service to our clients and supporting our people to thrive.' Quarterly purchase orders published by the Central Bank show that it paid out €2.76m, including Vat, to Sodexo Ireland in 2024. On future developments, the Sodexo directors state that 'the stability of the current portfolio enhances the capacity of the company to further grow the business by acquiring new contracts during the next financial year'. The profit last year takes account of €853,000 in non-cash depreciation and non-cash amortisation costs of €126,000. The firm had accumulated profits of €17.55m. Cash funds decreased from €15.09m to €11.83m. Shareholder funds totalled €14.04m. Sodexo Group operates in 45 countries, employing over 423,000. Led by CEO Sophie Bellon, the group recorded revenues of €23.79bn and operating profits of €1bn last year.
Yahoo
05-04-2025
- Business
- Yahoo
Sodexo (SDXAY) H1 2025 Earnings Call Highlights: Navigating Growth Challenges and Strategic ...
Revenue: EUR12.5 billion, up 3.1% with organic revenue growth of 3.5%. Organic Growth Guidance: Revised to 3% to 4% for fiscal year '25, down from initial 5.5% to 6.5%. Operating Profit: Increased by 6.4%, with a 10 basis point margin improvement to 5.2%. Net Profit: EUR434 million, down 12.5% compared to last year. Underlying Net Profit: EUR450 million, up 5.4%. Free Cash Flow: Negative EUR234 million due to seasonality, working capital requirements, and exceptional tax outflow. Net Debt: Increased by EUR850 million to EUR3.4 billion. Net Debt-to-EBITDA Ratio: 2.3 times, unchanged from H1 fiscal year '24. Retention Rate: 93.9% with a target of 94% to 94.5% for the full year. Development Rate: 7.3% with a target of 7% to 8% for the full year. Cost Savings: EUR10 million from Global Business Services project. Tax Rate: Projected at 23% to 24% for the year. CapEx: EUR256 million or 2.1% of revenue, with a target of around 2.5% for the full year. Warning! GuruFocus has detected 2 Warning Sign with SDXAY. Release Date: April 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sodexo (SDXAY) secured over EUR1 billion in new contracts during the first half, indicating strong business development momentum. The company achieved a 3.5% organic revenue growth in the first half, with food services outperforming at 4.5% organic growth. Sodexo (SDXAY) maintained a retention rate of 93.9%, with a target to reach between 94% and 94.5% for the full year. The company is making progress in cost management, with its Global Business Services project delivering around EUR10 million in savings this year. Sodexo (SDXAY) reported a 6.4% increase in underlying operating profit, with a 10 basis point margin improvement. Sodexo (SDXAY) revised its full-year guidance due to a lower-than-expected pace of growth, particularly in North America. The company faced delays in the ramp-up of new healthcare contracts, contributing to a 90 basis points drag on growth. Net new contributions in North America were weaker than expected, with some large contracts only starting to contribute in fiscal year '26. The education segment experienced a 60 basis points impact due to lower-than-expected volume growth and weather-related school closures. Sodexo (SDXAY) faced retention pressure in corporate services, contributing to a 50 basis points impact in North America. Q: What is the potential impact of American tariffs on Sodexo, and how will it affect your Australian contracts? A: Sophie Bellon, CEO, explained that Sodexo's operations in the US are largely insulated from tariffs as they recruit locally and source 90% of their food domestically. While some products from Mexico and Canada might be affected, the company can adapt by passing inflationary costs to contracts or changing products. Regarding Australian contracts, no impact is expected on the Rio Tinto and Santos contracts, as they are either in preparation or unaffected by current conditions. Q: Why do you expect CapEx to increase to 2.5% of sales by year-end? A: Sebastien De Tramasure, CFO, stated that the increase in CapEx is due to the timing of new contract mobilizations and retention efforts, which are expected to ramp up in the second half of the year, necessitating additional CapEx. Q: Can you provide more visibility on the growth algorithm for fiscal year 2026? A: Sophie Bellon, CEO, mentioned that while it's too early to provide detailed guidance for 2026, the company expects strong new contract momentum and a retention rate between 94% and 94.5%. The exit rate for growth in Q4 is expected to be better, providing a clearer picture for fiscal year 2026. Q: What are the reasons behind the delay in the US healthcare contract ramp-up? A: Sophie Bellon, CEO, clarified that the delay is specific to the Captis contract, which involves onboarding multiple healthcare organizations. The initial ramp-up was too optimistic, and while the impact will be small this year, it will grow in the following years, with significant contributions expected by fiscal year 2026. Q: How does Sodexo plan to handle the US government's stance on diversity and inclusion policies? A: Sophie Bellon, CEO, stated that Sodexo has not received any letter from the US Embassy regarding diversity and inclusion policies. The company is cautious and pragmatic, adjusting its external communications to avoid vulnerabilities while maintaining its core values. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
20-03-2025
- Business
- Yahoo
Sodexo cuts 2025 guidance on slower growth in North America
(Reuters) - French food caterer Sodexo lowered its 2025 guidance on Thursday, citing slower than expected organic growth in North America. "While our industry fundamentals remain strong, in North America the continued soft trend in volumes in Education and slower than expected net new ramp-up in Healthcare have impacted our ability to meet initial expectations," CEO and Chairwoman Sophie Bellon said in a statement. The group now sees 2025 organic revenue growth of between 3% and 4%, from between 5.5% and 6.5% previously, and an underlying operating margin increase of 10 to 20 basis points, down from a rise of 30 to 40 bps guided previously.
Reuters
20-03-2025
- Business
- Reuters
Sodexo cuts 2025 guidance on slower growth in North America
March 20 (Reuters) - French food caterer Sodexo ( opens new tab lowered its 2025 guidance on Thursday, citing slower than expected organic growth in North America. "While our industry fundamentals remain strong, in North America the continued soft trend in volumes in Education and slower than expected net new ramp-up in Healthcare have impacted our ability to meet initial expectations," CEO and Chairwoman Sophie Bellon said in a statement. The group now sees 2025 organic revenue growth of between 3% and 4%, from between 5.5% and 6.5% previously, and an underlying operating margin increase of 10 to 20 basis points, down from a rise of 30 to 40 bps guided previously.
