Sodexo: accounts disappoint and double warning; stock down
(CercleFinance.com) - The Sodexo share has plunged 14% on the Paris Stock Exchange this morning, making it - by far - the biggest faller in the CAC 40, after many disappointments.
First the early publication of interim accounts that are below expectations, as well as the launch of a double warning, on full-year sales and results.
The group will publish its final interim accounts on 12 April.
Sodexo has unveiled preliminary interim accounts. Over the period to end-February, sales reached 10.3 billion euros, meaning organic growth of 1.7%. The group's operating margin fell from 6.9% to 6.1%. These figures fell short of the consensus.
Even though net income, group share rose by 6.9% to 372 million euros, this has been boosted by a reduction in extraordinary items compared to the previous financial year and a significant reduction in the tax burden, Sodexo explains.
Sodexo also announced that for its non-calendar fiscal year 2017/2018 it now expects organic sales growth of between 1% and 1.5% (excluding the 53rd week), compared to a forecast of 2% to 4% confirmed on 11 January. In addition, the group's operating margin is no longer expected to be stable at 6.5%, but instead "around 5.7%".
Copyright (c) 2018 CercleFinance.com. All rights reserved.
First the early publication of interim accounts that are below expectations, as well as the launch of a double warning, on full-year sales and results.
The group will publish its final interim accounts on 12 April.
Sodexo has unveiled preliminary interim accounts. Over the period to end-February, sales reached 10.3 billion euros, meaning organic growth of 1.7%. The group's operating margin fell from 6.9% to 6.1%. These figures fell short of the consensus.
Even though net income, group share rose by 6.9% to 372 million euros, this has been boosted by a reduction in extraordinary items compared to the previous financial year and a significant reduction in the tax burden, Sodexo explains.
Sodexo also announced that for its non-calendar fiscal year 2017/2018 it now expects organic sales growth of between 1% and 1.5% (excluding the 53rd week), compared to a forecast of 2% to 4% confirmed on 11 January. In addition, the group's operating margin is no longer expected to be stable at 6.5%, but instead "around 5.7%".
Copyright (c) 2018 CercleFinance.com. All rights reserved.