Sodexo posts 2% organic revenue growth in fiscal 2026

Sodexo reported revenue of €23,963 million for the fiscal year ended 31 August 2026, in results released on 23 October. That was a 0.5% decline on a reported basis, while organic revenue growth was 2% after excluding currency and the net effect of acquisitions and disposals. The company gave the net scope contribution as 0.5% and the adverse currency impact as 3%. Organic growth and the change in reported revenue therefore point in different directions.

The board approved the results on 22 October. Sodexo said fourth-quarter activity was stronger than anticipated and that full-year organic growth exceeded its earlier guidance. Pricing contributed about 2.4% to organic revenue growth, while like-for-like volume growth was about 0.6%. The company said slightly negative net new business and a North American contract reclassification offset part of the gains. The reclassification, from gross to net revenue recognition, reduced organic growth by approximately 0.7 percentage points.

Organic revenue growth was 1.6% in food services and 2.9% in facilities management. These are the company’s service-line growth rates; they do not show each line’s share of total revenue or a change in sales per customer. By geography, North America recorded 1% organic contraction, Europe grew 2.1% and the rest of the world grew 9.7%. The differences show why the group’s results cannot be represented by a single uniform regional trading condition.

Sodexo attributed the North American decline mainly to earlier contract losses and the accounting reclassification. It reported strong growth in Healthcare and Seniors as new contracts ramped up, while activity at stadiums, conference centres and airport lounges supported Sodexo Live!. In Europe, Healthcare and Seniors supported growth, while education and business-administration services were more subdued amid negative net new business. These explanations are the company’s account of its operating performance.

Underlying operating profit was €810 million and its margin was 3.4%, compared with 4.7% a year earlier. Sodexo linked the decline to charges and provisions arising from reviews of certain contracts and assets, faster investment to strengthen capabilities and operational factors. Reported group net profit fell to €304 million. The figures show that revenue growth alone does not describe the company’s profitability performance.

Free cash flow was €379 million, net debt was €2.9 billion and net debt to EBITDA was 2.4 times. The board proposed a dividend of €1.74 per share, presented as consistent with the group’s 50% payout policy. Sodexo reported client retention of 94.4% and development of 7.7%. It defines both commercial indicators using the annualized revenue of contracts gained or lost, excluding cross-selling; they do not represent their contribution to revenue during the fiscal year.

The company reaffirmed fiscal 2027 guidance for organic revenue growth of 2% to 3% and an underlying operating margin broadly in line with fiscal 2026’s 3.4%. These are forward-looking expectations, not realized results. The annual figures measure Sodexo’s own global food-services and facilities-management operations; they are not independent statistics on food prices, the entire catering industry or consumer demand in every country.