Sodexo
Note: This is a daily stock update and the information stands true as of 20/03/25, 09:00 CET.
Company Update:
Momentum is fading away. The exposure to the US is significant with almost 50% of sales over there. While we still like the long-term trend and the group’s business model. We expect short-term momentum will be adverse. We would rather wait on the sideline and will look for a lower entry point.
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Company Update:
Company released a (very) short press release downgrading its FY forecast.
Organic growth is cut from 5.5%-6.5% to 3% to 4% and operating margin to improve 10 to 20 bps vs 30 to 40 bps previously.
In a first approach that would induce a c 7% cut at the EBIT level.
H1 preliminary results:
Sales up 3.5% lfl to €12.48bn vs consensus of 4.6% lfl and €12.54bn.
EBIT stands at €651m, short of the consensus at €666m.
The company says that North America is slowing down notably in education and healthcare.
Conference call ongoing more details later.
Expert Opinion: Momentum is fading away. The exposure to the US is significant with almost 50% of sales over there. While we still like the long-term trend and the group’s business model. We expect short-term momentum will be adverse. We would rather wait on the sideline and will look for a lower entry point.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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