- Third-quarter revenue for Sodexo was EU6.07 billion, an increase of 5.5% year-over-year but below the estimate of EU6.14 billion.
- Organic revenue growth for the third quarter stood at 6.8%.
- For the first nine months, revenue was EU18.18 billion, up by 4.8% year-over-year.
- Organic revenue for the nine-month period rose by 7.9%.
- Sodexo still predicts its organic revenue will be at the high end of its 6% to 8% forecast for the year.
- The company expects its underlying operating profit margin to grow by 30 to 40 basis points at constant rates in 2024.
- Organic growth was affected by an accounting change related to project works in a significant contract outside Europe and North America.
- Around half of the organic growth in the quarter was driven by pricing, which dropped below 4%.
- On June 27, 2024, Sodexo’s board decided to establish a board-level sustainability committee starting from October 2024.
A look at Sodexo SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
When considering the long-term outlook for Sodexo SA, it’s evident that the company is positioned favorably in terms of dividends and momentum. With a strong dividend score of 4, Sodexo SA is expected to provide consistent returns to its shareholders. Additionally, the company’s high momentum score of 5 indicates positive market sentiment and potential for continued growth. While value and resilience scores are more moderate at 2, Sodexo SA shows promise for growth with a score of 3. Overall, based on the Smartkarma Smart Scores, Sodexo SA appears to be a solid investment option with a positive outlook for the future.
Sodexo SA is a company that specializes in providing on-site service solutions for a wide range of clients. From food services to construction management, technical maintenance, and employee benefit programs, Sodexo offers diverse services to meet the needs of its customers. With operations spanning various industries such as correctional facilities and river cruises, the company has established itself as a versatile player in the service sector. The Smartkarma Smart Scores suggest that Sodexo SA is well-poised for growth and stability, making it an attractive prospect for investors looking for long-term opportunities.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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