BUZZ-Sodexo drops and drags down peers on FY 2025 guidance cut

Reuters2025-03-20
BUZZ-<a href="https://laohu8.com/S/SDXAY">Sodexo</a> drops and drags down peers on FY 2025 guidance cut

** Shares in Sodexo EXHO.PA drop 13.5%, paring losses after falling as much as 16.4%, after the French caterer revised downwards its 2025 organic revenue growth and underlying operating margin guidance,

** Group sees FY organic sales growth of 3-4% (vs. previous guidance of +5.5-6.5%), below 5.45% seen in LSEG consensus

** J.P. Morgan says Sodexo has this morning released a profit warning, implying LSD-MSD % cuts to FY 25 revenue/EBIT, primarily driven by a softer-than-expected performance in North America.

** "We expect the shares to be materially down," JPM says, adding today's warning will drag the overall catering space down

** Compass group CPG.L is down 2.8% at 0816 GMT while Elior ELIOR.PA drops 4.2%

** Share on track for its worst day in five years, when it closed 13.9% lower

(Reporting by Dimitri Rhodes)

((Dimitri.rhodes@thomsonreuters.com))

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