Sodexo: sharpest faller in CAC, with new sales warning.
(CercleFinance.com) - The Sodexo share is down over 5% this morning on the Paris Stock Exchange, representing the sharpest faller in the CAC 40, with the group having (once again) issued a warning about organic sales growth for the current year.
On unveiling its revenues for the first nine months of 2016/2017 (period to end-May), the group confirmed that it expects, full-year operating profit excluding extraordinary items and FX factors that is up by 8% to 9%. The same applies for its medium-term targets.
However, the group's organic sales growth target for 2016/2017, which was previously around 2.5%, has been reduced to 1.5% to 2%. This comes as a new disappointment; as Aurel BGC analysts point out, "this target had already been reduced in April, from 3% initially".
Meanwhile Bryan Garnier disdains "disappointing organic growth that is significantly below expectations", which only reached 0.5% over the first nine months of the year (compared with 1.2% expected) and 1.3% without considering the impact of the Rugby World Cup.
Organic growth in Q3 alone, which also reached 1.3%, was expected to reach 3.5%, underlines Bryan Garnier. While, Aurel BGC underlines that this is deemed disappointing due to a weaker than expected activity in health and universities in North America or because of the weakness of business services in Europe.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
On unveiling its revenues for the first nine months of 2016/2017 (period to end-May), the group confirmed that it expects, full-year operating profit excluding extraordinary items and FX factors that is up by 8% to 9%. The same applies for its medium-term targets.
However, the group's organic sales growth target for 2016/2017, which was previously around 2.5%, has been reduced to 1.5% to 2%. This comes as a new disappointment; as Aurel BGC analysts point out, "this target had already been reduced in April, from 3% initially".
Meanwhile Bryan Garnier disdains "disappointing organic growth that is significantly below expectations", which only reached 0.5% over the first nine months of the year (compared with 1.2% expected) and 1.3% without considering the impact of the Rugby World Cup.
Organic growth in Q3 alone, which also reached 1.3%, was expected to reach 3.5%, underlines Bryan Garnier. While, Aurel BGC underlines that this is deemed disappointing due to a weaker than expected activity in health and universities in North America or because of the weakness of business services in Europe.
Copyright (c) 2017 CercleFinance.com. All rights reserved.