French catering giant Sodexo has posted modest growth for the year ending 31 August 2025.
Overall revenue rose 1.2% year on year to €24.1b, driven by 3.3% organic growth, but partly offset by a -1.8% currency impact and a -0.3% hit from acquisitions and disposals.
The 3.3% organic revenue uptick reflects a contribution from pricing close to 3% and slight positive volume and net new business contribution.
In Europe, organic growth was 1.7%, or 2.7% excluding the base effect of the Rugby World Cup and the Olympics, with progress across segments, notably in healthcare and seniors.
Underlying group net profit was up 3.7%, reaching €785m.
Sodexo retained 94% of its clients during its financial year, impacted by losing a large global facilities management account and weaker performance in the US education segment.
However, new signings totalled €1.7b, with a strong start to the year followed by a softer second half, partly mitigated by successful cross-selling.
In the UK, new clients included East Suffolk & North Essex NHS Foundation Trust, BNP Paribas, the Scottish Open and Sevenoaks School, while notable extended partnerships were with BASF, Nuffield Health, Chesterfield Royal Hospital NHS Foundation Trust, Central Bank of Ireland, Millwall Football Club and HMP Forest Bank.
Sodexo expects its 2026 revenue growth to remain steady at between 1.5% and 2.5%, reflecting a minimum 2% contribution from pricing, neutral to moderate contribution from both like-for-like volume and net new business and a one-off reclassification triggered by the renewal of a large contract.
Chairwoman and CEO, Sophie Bellon, who will move to the role of non-executive chairwoman when Thierry Delaporte takes over the position on 10 November 2025, said: “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, whilst continuing the transformation of our operating model. These efforts have set a strong 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 cited the caterer’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.”