French catering giant Sodexo has reported modest growth for the financial year ending 31 August 2025.
Total revenue increased by 1.2% year-on-year to €24.1 billion, supported by 3.3% organic growth, though this was partially offset by a -1.8% currency impact and a -0.3% effect from acquisitions and disposals.
The 3.3% organic revenue increase was largely driven by pricing, which contributed nearly 3%, alongside a modest boost from volume growth and net new business.
In Europe, organic growth reached 1.7%, or 2.7% when excluding the base effect of the Rugby World Cup and the Olympics, with steady progress across all segments, particularly in healthcare and senior living.
Underlying group net profit rose by 3.7% to €785 million.
Sodexo maintained a 94% client retention rate over the financial year, though this was affected by the loss of a major global facilities management contract and softer performance in its US education division.
However, new contract signings reached €1.7 billion, with a strong first half of the year followed by a softer second half, partly offset by effective cross-selling initiatives.
In the UK, Sodexo secured new contracts with East Suffolk & North Essex NHS Foundation Trust, BNP Paribas, the Scottish Open, and Sevenoaks School. The company also extended key partnerships with BASF, Nuffield Health, Chesterfield Royal Hospital NHS Foundation Trust, the Central Bank of Ireland, Millwall Football Club, and HMP Forest Bank.
Sodexo forecasts 2026 revenue growth of 1.5% to 2.5%, driven by at least a 2% contribution from pricing, with neutral to moderate impacts from like-for-like volume and net new business, alongside a one-off reclassification related to the renewal of a major contract.
Chairwoman and CEO Sophie Bellon, who will become non-executive chairwoman when Thierry Delaporte assumes the role on 10 November 2025, stated: “Over the past four years, we have repositioned Sodexo as a pure-play food and services company. We have streamlined our portfolio, sharpened our focus on core activities, and continued transforming our operating model. These efforts have laid a solid foundation for sustainable performance.
“Our fiscal 2025 results reflect both the progress achieved and the operational challenges we faced, particularly in the US. For fiscal 2026, we remain laser-focused on addressing these challenges, with clear action plans already underway.”
Reviewing the UK performance, Jean Renton, CEO for Sodexo UK and Ireland, said: “Our strong performance is clear in the growth we’ve delivered across all our markets and the continued trust of clients who choose Sodexo for our food-led, integrated services which elevate the workplace experience.
“As we look ahead, we remain focused on sustainable growth, delivering even greater value for our clients, and creating a better every day for all.”
She also highlighted the company’s progress on its Social Impact Pledge to 2030, adding: “Social impact is embedded into our decision making and this strength of purpose and delivery has been acknowledged at several industry awards this year, one we are particularly proud of is winning the Sustainable Business Award at this year’s prestigious Cateys. This recognition reaffirms our commitment to achieving net zero and driving positive change across our supply chain and communities. These achievements show how purpose and performance go hand in hand at Sodexo.”