Sodexo warns on revenue growth, Trump impact

By Dimitri Rhodes and Etienne Breban

(Reuters) -French food caterer Sodexo on Tuesday said it expects revenue and margin growth to be at the lower end of its 2025 forecasts and warned U.S. President Donald Trump's policies could impact its universities and healthcare business.

On a call with reporters, Chief Financial Officer Sébastien de Tramasure cited a slowdown in the company's education business, in part due to a lower-than-expected increase in university enrollments.

Lower enrolment in the group's portfolio of universities, mainly concentrated in the U.S. Northeast and Midwest, had been flagged as a headwind by the company in March.

Asked about the possible impact of polices pursued by U.S. President Donald Trump, de Tramasure said: "These mainly affect two segments: universities and healthcare, and there could indeed be effects related to reductions in federal aid and subsidies."

"For now, we have not observed any impact on our activities but the climate of uncertainty is never positive and we will be watching developments in the United States very closely," he added.

Sodexo, which generates 47% of its revenue in North America, in March issued a profit warning due to a weak performance in its education and healthcare businesses in the region.

Organic growth in North America slowed down to 1.2% in the third quarter from 9% growth a year earlier, impacted by prior contract losses, Sodexo said on Tuesday.

Sodexo's revenue was 6.12 billion euros ($7.21 billion) in the third quarter through May 31, up from 6.07 billion euros last year, and slightly above the 6.11 billion euros seen in a company-compiled consensus.

The company had previously guided for 2025 organic revenue growth of between 3% and 4% and an underlying operating profit margin increase of 10 to 20 basis points (bps).

($1 = 0.8485 euros)

(Reporting by Dimitri Rhodes and Etienne Breban; Editing by Matt Scuffham)