- Sodexo’s underlying operating profit exceeded estimates, reaching EU612 million, a y/y increase of 12%. Previous estimate was EU589.8 million.
- The adjusted operating margin saw an increase from 4.7% y/y to 5.1%, beating the estimate of 4.79% which came from two distinct estimates.
- Organic revenue grew by 8.5%, surpassing the estimate growth of 7.73%.
- Revenue reached EU12.10 billion, up by 4.5% y/y and surpassing the estimated EU12.02 billion.
- The company predicts that the high end of organic revenue will see an increase of 6% to 8%, maintaining the current forecast.
- Sodexo anticipates an improvement in its underlying operating profit margin between +30bps to +40bps at constant currencies in fiscal 2024.
A look at Sodexo SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Sodexo SA‘s long-term outlook appears positive, with notably high scores in Growth and Dividend factors. Sodexo SA designs, manages, and delivers diverse on-site service solutions for clients, including food services, construction management, and employee benefit programs. Its strong Growth score reflects the company’s potential for expansion and development over time, while its high Dividend score indicates a solid track record of distributing profits to shareholders. However, Sodexo SA scored lower in Resilience and Momentum factors, suggesting areas where the company may face challenges in the future.
Sodexo SA‘s overall Smartkarma Smart Scores reveal a mixed outlook, with strengths in Growth and Dividend factors but weaknesses in Resilience and Momentum. Despite its lower scores in Resilience and Momentum, Sodexo SA‘s core business of providing on-site service solutions positions it well in the market. As a company that offers a wide range of services such as food, technical maintenance, and employee benefits, Sodexo SA has the potential to capitalize on its strengths in Growth and Dividend factors to drive future success and profitability.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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