Sodexo: stock down on disappointing forecasts
(CercleFinance.com) - On Thursday Sodexo announced better-than-expected results for H1 2020-2021, although its forecasts for H2 disappointed investors, resulting in the share price falling in early trading on the Paris Stock Exchange.
This morning the French catering and food services group reported adjusted net profit of 128 million for euros for the six months to 28 February, having collapsed 70% from the 424 million euros in H1 2019-2020, i.e. before the start of the health crisis.
The group's operating margin reached 3.1%, well above forecasts, with the consensus expecting around 2.6%.
Revenues came in at 8,595 million euros, down 26.5%, which it attributes to the Covid-19 pandemic.
The group also states that the situation remains "volatile" in the near future, particularly in Europe, due to new waves of the pandemic.
In this context, Sodexo says it expects organic growth of between 10% and 15% in H2 2020-2021, while the consensus was looking for an acceleration of around 25%.
As a result, the share price of the world's number two in the sector - behind the British company Compass - fell by around 1% in early trading, giving it a market capitalisation of under 12 billion euros.
However, the share price has still risen by over 18% YTD.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
This morning the French catering and food services group reported adjusted net profit of 128 million for euros for the six months to 28 February, having collapsed 70% from the 424 million euros in H1 2019-2020, i.e. before the start of the health crisis.
The group's operating margin reached 3.1%, well above forecasts, with the consensus expecting around 2.6%.
Revenues came in at 8,595 million euros, down 26.5%, which it attributes to the Covid-19 pandemic.
The group also states that the situation remains "volatile" in the near future, particularly in Europe, due to new waves of the pandemic.
In this context, Sodexo says it expects organic growth of between 10% and 15% in H2 2020-2021, while the consensus was looking for an acceleration of around 25%.
As a result, the share price of the world's number two in the sector - behind the British company Compass - fell by around 1% in early trading, giving it a market capitalisation of under 12 billion euros.
However, the share price has still risen by over 18% YTD.
Copyright (c) 2021 CercleFinance.com. All rights reserved.