Sees FY organic sales growth at top end of 6-8% guidance (Il Sole 24 Ore Radiocor) - Paris, 02 Jul - French corporate services and catering group Sodexo said that in its third-quarter sales reached 6.074 billion euros, up a reported 5.6% with growth driven by a 9.2% jump in North America and reflecting a negative currency impact of 0.2%, and a negative net contribution from acquisitions and disposals of 1.0%.

Organically, sales rose 6.8% with an 8.6% rise in Food services and a 3.5% increase in the facilities management business. Organic growth was driven by a 9.0% rise in North America, followed by a 5.4% increase in Europe and 3.6% growth in the rest of the World region.

Organic growth was impacted by an accounting change for project works in a large contract in the rest of the world.

Excluding this, third quarter organic growth stood at 7.2%.

In the first half of fiscal 2024, organic growth was 8.5%.

The sequential slowdown in growth compared to the second quarter was explained by, on the one hand, lower pricing effect and a higher comparative base in the third quarter, and, on the other hand, a positive leap year impact in the second quarter.

Sodexo confirmed its full year guidance and said it expects organic sales growth to come in at the top end of the 6-8% guidance range with an underlying operating profit margin improvement of 30-40 basis points at constant currencies.

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(RADIOCOR) 02-07-24 08:16:48 (0152) 5 NNNN