Sodexo: Oddo BHF still a buyer
(CercleFinance.com) - Oddo BHF confirms its Outperform rating on Sodexo shares, with an unchanged TP of E98, following the announcement of H1 figures and a reduction in forecasts for 2025.
Sodexo reported H1 sales of E12.5bn, up 3.1%, although 1% below the consensus.
Oddo BHF points out that organic growth was mainly impacted by weakness, in North America, at +3.5% in H1 (i.e. 0.8% in Q2 after 5.9% in Q1) and Europe at +2.1% (i.e. 2.2% in Q2 after 2.0% in Q1).
North America suffered from persistently weak volumes in the education and healthcare sectors, while the retail, administration and lifestyle sectors remained solid, it says.
Underlying EBIT amounted to E651m, 3% below the consensus, implying a margin of 5.2% (+10bp), which is also (just) below the consensus of 5.3% (+30bp).
Following the failure in H1, Sodexo has reduced its forecasts for FY 2025. It now expects organic growth of around +3%/4% (vs. +5.5/6.5% previously; consensus of 5.4%) and an EBIT margin improvement of +10bp/20bp at constant rates (vs. +30bp/40bp previously; consensus +30bp).
This reduction in FY forecasts is a further disappointment after the Q1 publication, which was already considered weak, Oddo BHF adds in conclusion.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Sodexo reported H1 sales of E12.5bn, up 3.1%, although 1% below the consensus.
Oddo BHF points out that organic growth was mainly impacted by weakness, in North America, at +3.5% in H1 (i.e. 0.8% in Q2 after 5.9% in Q1) and Europe at +2.1% (i.e. 2.2% in Q2 after 2.0% in Q1).
North America suffered from persistently weak volumes in the education and healthcare sectors, while the retail, administration and lifestyle sectors remained solid, it says.
Underlying EBIT amounted to E651m, 3% below the consensus, implying a margin of 5.2% (+10bp), which is also (just) below the consensus of 5.3% (+30bp).
Following the failure in H1, Sodexo has reduced its forecasts for FY 2025. It now expects organic growth of around +3%/4% (vs. +5.5/6.5% previously; consensus of 5.4%) and an EBIT margin improvement of +10bp/20bp at constant rates (vs. +30bp/40bp previously; consensus +30bp).
This reduction in FY forecasts is a further disappointment after the Q1 publication, which was already considered weak, Oddo BHF adds in conclusion.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.