PARIS (dpa-AFX) - Sodexo (SDXAY, SW.PA, SDXOF), a French food services and facilities company, on Friday posted a steep decline in net income for fiscal 2026, hurt by a drop in revenue from North America, higher costs and expenses, including restructuring expenses.
For fiscal 2026, the company posted a net income of EUR 304 million, or EUR 2.07 per share, less than EUR 695 million, or EUR 4.71 per share in the same period last year. Underlying net profit amounted to EUR 508 million, or EUR 3.48 per share, compared with EUR 785 million, or EUR 5.37 per share in fiscal 2025.
Profit before tax was EUR 391 million as against the prior year's EUR 904 million. Operating profit declined to EUR 520 million from last year's EUR 985 million. Underlying operating profit was EUR 810 million, down from EUR 1.139 billion in the previous year. The decrease was mainly due to the charges and provisions from the review of certain contracts and assets, accelerated investment, and operational factors.
Cost of sales moved up to EUR 21.422 billion from EUR 21.241 billion a year ago. Selling, general, and administrative costs were EUR 1.738 billion, higher than EUR 1.699 billion in the previous year. Other operating expenses stood at EUR 336 million as against EUR 175 million in fiscal 2025.
Revenue was EUR 23.963 billion, less than last year's EUR 24.074 billion. The company's revenue from North America moved down to EUR 10.491 billion from EUR 11.180 billion a year ago.
In addition, at the annual shareholders meeting on December 16, the board intends to propose the appointment of Nathalie Bellon-Szabo as Chairwoman to succeed Sophie Bellon, who has chaired the board since 2016. Upon her appointment, Bellon-Szabo is expected to step down as CEO of Sodexo Live! Worldwide.
Further, Sodexo will pay an ordinary dividend of EUR 1.74 per share on December 22.
Looking ahead, for fiscal 2027, the company has reaffirmed its organic revenue growth outlook of +2% to +3%. The company still anticipates underlying operating profit margin to be broadly in line with the 3.4% reported for fiscal 2026.
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