Sodexo drops and drags down peers on FY 2025 guidance cut

Elior SA

20/03/2025 08:35

** Shares in Sodexo EXHO.PA drop 13.5%, paring losses after falling as much as 16.4%, after the French caterer revised downwards its 2025 organic revenue growth and underlying operating margin guidance,

** Group sees FY organic sales growth of 3-4% (vs.  previous guidance of +5.5-6.5%), below 5.45% seen in LSEG consensus

** J.P. Morgan says Sodexo has this morning released a profit warning, implying LSD-MSD % cuts to FY 25 revenue/EBIT, primarily driven by a softer-than-expected performance in North America.

** "We expect the shares to be materially down," JPM says, adding today's warning will drag the overall catering space down

** Compass group CPG.L is down 2.8% at 0816 GMT while Elior ELIOR.PA drops 4.2%

** Share on track for its worst day in five years, when it closed 13.9% lower

 (Reporting by Dimitri Rhodes)

 ((Dimitri.rhodes@thomsonreuters.com))