Sodexo, the French catering and food service company, has announced a growth in revenue for the first quarter and is confident in meeting its fiscal 2024 targets.
For the quarter ended in November, Sodexo recorded a revenue of €6.29 billion ($6.89 billion), representing an organic growth of 8.2% compared to the same period last year. On a reported basis, the revenue increased by 3.1%.
Despite the year-on-year increase, the company also experienced a negative currency impact of 4.8%. However, Sodexo expects this impact to gradually diminish throughout the fiscal year, assuming current rates continue.
North America played a significant role in driving group revenue, contributing €3.03 billion. Moreover, all geographies reported high-single digit underlying organic growth.
Sodexo is making progress with its planned spin-off of its Pluxee employee-benefits business, which is scheduled to be listed on Euronext Paris on February 1st. The first-quarter revenue and guidance provided by Sodexo exclude Pluxee.
The company has reiterated its outlook for fiscal 2024 and fiscal 2025, maintaining an expectation of organic revenue growth between 6% and 8% per year. Additionally, Sodexo aims to increase its underlying operating margin by 30-40 basis points each year at constant-exchange rates.