French food caterer Sodexo SW narrowed its 2025 guidance on Tuesday, saying it now expects revenue and margin growth to be at the lower end of its 2025 forecasts.
It had previously guided for 2025 organic revenue growth of between 3% and 4% and an underlying operating profit margin increase of 10 to 20 basis points (bps).
Sodexo, which generates around half of its revenue in North America, in March issued a profit warning due to a weak performance in its education and healthcare businesses in the region.
Organic growth in North America slowed down to 1.2% in the third quarter from 9% growth a year earlier, impacted by prior contract losses, Sodexo said.
Lower enrolment in the group’s portfolio of universities, mainly concentrated in the U.S. Northeast and Midwest, had been flagged as a headwind by the company in March.
The company’s revenue was 6.12 billion euros ($7.21 billion) in the third quarter through May 31, up from 6.07 billion euros last year, and slightly above the 6.11 billion euros seen in a company-compiled consensus.
($1 = 0.8485 euros)