Sodexo posts 2.0% organic growth, beating guidance, proposes dividend of 1.74 euros a share
Key Facts
Sodexo reported organic revenue growth of 2.0% for fiscal 2026, exceeding its annual guidance, according to the company's earnings statement, after raising its forecast range during the year. When reporting third-quarter results, the company had forecast organic revenue growth of between 1.2% and 1.5% for the fiscal year, a range exceeded by the final reported figure. That forecast had been raised from a previous range of between 0.5% and 1%, leaving Sodexo's annual growth above both ranges it announced during the same fiscal year. On profitability, the underlying operating profit margin reached 3.4%, which the company said was at the top end of the expected range for the fiscal year just ended. On liquidity, the annual results showed free cash flow of 379 million euros, among the financial indicators Sodexo reported alongside organic growth and its operating margin. The company proposed a cash dividend of 1.74 euros a share for fiscal 2026, according to its annual results page. It also reaffirmed guidance for the next fiscal year, after its transformation plan set an organic revenue growth range of between 2% and 3% for 2027.
The annual results follow pressure on profitability in the first half of fiscal 2026, when underlying operating profit stood at 442 million euros, according to the earnings statement for that period. That represented a year-on-year decline of 32.1% in underlying operating profit, before the company raised its organic growth forecast when reporting third-quarter results. Sodexo had cut its annual targets alongside its first-half results, citing execution challenges and a review of its management of contracts and assets, Reuters reported. The news agency said the shares fell 13% during the trading session on 10 April 2026 following the target cuts, in reaction to that earlier announcement. In a subsequent commercial development, Sodexo announced in July 2026 that it had secured a global food services contract with Meta, covering sites across the regions included in the agreement. The company said the partnership covers more than 130 sites in more than 30 countries, adding a multinational contract to its food services business during the year in which it revised its financial targets.
Over the longer term, Sodexo's growth acceleration plan set ambitions above the performance levels recorded in the fiscal year just ended, with a timeframe extending to fiscal 2030. In announcing the plan, the company said it aims to "achieve organic growth above 5% and an operating margin above 5% by fiscal 2030". That places the long-term organic growth target above the 2.0% achieved in fiscal 2026 and above the guidance range the company maintained for fiscal 2027. The plan also targets an operating margin above 5%, compared with an underlying operating profit margin of 3.4% in the latest annual results. On its upcoming schedule, Sodexo will hold its annual general meeting on 16 December 2026, according to the company's published financial calendar. It will then publish first-quarter revenue for fiscal 2027 on 7 January 2027, the next quarterly reporting date listed in its financial calendar.