Sodexo: stock jumps after sales and forecasts
(CercleFinance.com) - The Sodexo share is up almost 8% in early trading on Friday after the group announced its sale and forecasts.
Q1 2020-2021 sales fell by 22.7% and by 21.5% to 4,432 million excluding the effect of the Rugby World Cup in the first quarter of FY 2019-2020.
The group reports that the trend has therefore improved since the previous quarter, when it reported a slump of 24.9%.
"At this stage, after the first quarter performance, we maintain our guidance for an organic decline of between -20% and -25% for the first half Fiscal 2021, improving relative to the second half Fiscal 2020," it said.
"First quarter Fiscal 2021 performance has been better than expected in terms of cost control and contract negotiations, and so, despite the uncertainty around the evolution of the pandemic, our first half Fiscal 2021 Underlying operating margin target is now for at least 2.5%, better than our original assumption of between 2 and 2.5%," management added.
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