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Sodexo maintains FY'18 guidance following weak revenue growth

Sodexo SA on July 5 reported that its revenue results for the third fiscal quarter of 2018 were in line with the company's "revised expectations."

For fiscal 2018, the French food services provider maintained its guidance of an organic revenue growth of 1% to 1.5%, minus the impact of the 53rd week. It also continues to expect an underlying operating profit margin of approximately 5.7%, excluding the currency impact.

For the nine months ended May 31, Sodexo's total revenue declined 2.9% to approximately €15.53 billion from about 15.98 billion in the prior-year period, as the French food company was negatively affected by the weakness of the U.S. dollar and Brazilian real.

In terms of organic revenue, its on-site services arm posted an organic revenue growth of 1.5% while its benefits and rewards services segment experienced a 4.2% jump.

CEO Denis Machuel added, "On-site services' organic growth remained soft, as anticipated, and Benefits & Rewards Services improved slightly. Across our services, we have seen particularly strong growth across Asia and Latin America."

Sodexo also appointed Sophie Stabile as its director following the resignations of Patricia Bellinger and Michel Landel from the board.