Sodexo 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