Core Insights - The company reported consolidated revenues of €12.475 billion for the first half of Fiscal 2025, reflecting a year-on-year increase of 3.1% [2][7][18] - Organic revenue growth was 3.5%, down from 8.5% in the previous year, indicating a slowdown in growth momentum [2][19] - Underlying operating profit increased by 6.4% to €651 million, with an underlying operating profit margin of 5.2%, up 10 basis points from the previous year [2][36][45] - Group net profit from continuing operations decreased by 12.5% to €434 million, primarily due to an exceptional capital gain in the prior year [2][41] - The effective tax rate rose to 19.5% from 16.6% in the previous year, influenced by updates related to a tax audit [2][40] Financial Performance - Revenues for the first half of Fiscal 2025 were €12,475 million, compared to €12,101 million in the first half of Fiscal 2024, marking a 3.1% increase [2][18] - Organic growth was driven by food services, which grew by 4.5%, while facilities management services saw a growth of 1.7% [19][22] - The underlying operating profit margin improved to 5.2%, with all geographic zones showing improvements [36][45] - The company experienced a negative impact from currency fluctuations, contributing to a 0.1% decline in revenue growth [7][62] Geographic Performance - North America achieved organic growth of 3.5%, with strong performance in Sodexo Live! and Corporate Services, although this was partially offset by contract demobilizations [7][22] - Europe reported organic growth of 2.1%, driven by healthcare and seniors, but faced challenges in facilities management services [7][28] - The Rest of the World saw a robust organic growth of 6.6%, particularly in India, Brazil, and Australia [7][33] Guidance and Outlook - The full-year Fiscal 2025 guidance was revised, with organic revenue growth now expected to be between 3% and 4%, down from the initial guidance of 5.5% to 6.5% [6][58] - The underlying operating profit margin improvement is now projected to be between 10 and 20 basis points, reduced from the previous expectation of 30 to 40 basis points [6][58] Cash Flow and Debt - Free cash flow for the first half of Fiscal 2025 was a negative €234 million, compared to a negative €102 million in the previous year, primarily due to an exceptional tax outflow [14][47] - Net debt increased to €3.416 billion from €2.6 billion at the end of Fiscal 2024, reflecting seasonal cash flow patterns and dividend payments [14][49] - The net debt to EBITDA ratio stood at 2.3x, consistent with the previous year, indicating stable leverage despite increased debt levels [14][51]
Sodexo First half Fiscal 2025 results