Published by Global Banking & Finance Review®
Posted on January 8, 2026
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleSodexo's Q1 organic sales rose 1.8%, beating forecasts. Despite US dollar challenges, new CEO Thierry Delaporte focuses on North America to drive growth.
Jan 8 (Reuters) - French food caterer Sodexo reported a 1.8% organic rise in its first-quarter revenue on Thursday, beating market forecasts, although the weakness of the U.S. dollar against the euro pulled the reported figure below the line.
On a reported basis, which includes currency exchange effects, the group's revenue fell to 6.26 billion euros ($7.31 billion) in the three months through November, from 6.4 billion a year earlier. Analysts polled by Sodexo were expecting revenue of 6.27 billion euros and organic growth of 1.5%.
The company, which generates roughly a half of its revenue in North America, had in October said it expected revenue growth to slow down in the 2026 financial year due to challenges in its U.S. business.
Sodexo's newly appointed CEO Thierry Delaporte, who replaced Sophie Bellon in November, has taken direct leadership of the North America business to drive execution and performance there, the group said.
Organic revenue in the region dropped 1.5%, compared with 5.9% growth in the year-ago period, weighed down by past contract losses in the Education and Business & Administration businesses, it added.
Softer student enrolment is weighing on Sodexo's U.S. campus footprint, mainly in Midwestern and Northeastern states, but it is targeting larger universities and athletics accounts, with an aim to restore growth from 2027.
Sodexo confirmed its full-year guidance, including organic revenue growth between 1.5% and 2%, assuming a positive contribution of at least 2% from pricing.
It had warned in October that pricing would be a main driver of organic growth this year, after revenue from new signings dropped 10.5% in 2025.
"We continue to focus on clear near-term priorities," Sodexo said. "Planned investments in technology, sales effectiveness, supply management, Global Business Services and targeted U.S. Education initiatives are underway and are expected to support performance over the medium term."
($1 = 0.8563 euros)
(Reporting by Dimitri Rhodes in Gdansk, editing by Milla Nissi-Prussak)
Organic growth refers to the increase in revenue generated from a company's existing operations, excluding any revenue from mergers or acquisitions.
Currency hedging is a financial strategy used to reduce the risk of adverse price movements in foreign exchange rates, protecting investments from currency fluctuations.
Financial results are the summary of a company's financial performance over a specific period, typically including revenue, expenses, profit, and loss figures.
Pricing strategy is the method companies use to price their products or services, aiming to maximize profitability while considering market demand and competition.
Revenue growth is the increase in a company's sales over a specific period, often expressed as a percentage, indicating the company's ability to expand its business.
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