(Il Sole 24 Ore Radiocor) - Milano, 10 apr - The French food services and facilities management group Sodexo said it reported a net profit of 188 million euros in the first half ended on February 28, down from 434 million the year earlier.

Basic underlying earnings per share decreased to 1.96 euros from 3.06 euros.

Underlying operating profit was 442 million euros, down by 32.1% year on year. The underlying operating profit margin declined by 1.40 percentage points to 3.7%, "reflecting operational challenges and mix effects, lower operating leverage linked to softer growth dynamics and the acceleration of investments to strengthen execution," among other factors.

Revenue in the first half amounted to 12.0 billion euros, down 3.7% year on year due to currency headwinds. Based on current spot rates, Sodexo noted that these currency headwinds are expected to progressively ease in the second half, subject to market conditions.

Organic revenue growth was 1.7%.

Sophie Bellon, the chairwoman of Sodexo, said in a statment that the company had "undeniably underperformed" the market and its main competitors. "The root causes have been building over time and relate primarily to under-investment and execution: commercial intensity, decision-making and prioritization, and consistency in delivery." Bellon noted that Sodexo has conducted a review of its contracts and assets, with short-term financial implications reflected in both first-half results and in a revised outlook for fiscal year 2026.

"While we know this will not be an overnight fix, we are moving with a strong sense of urgency on our action plan to restore growth. We have been making significant leadership changes and simplifying the organizational structure in order to accelerate decision-making and raise accountability standards," said Bellon. "The entire Sodexo organization is shifting gears, and we are seeing early positive signals." She added that Sodexo will outline its roadmap and share its.

mid-term objectives at an investor update to be held in July.

(RADIOCOR) 10-04-26 08:10:56 (0110) 5 NNNN