Sodexo Q1 Fiscal 2025 Revenues: a soft start to the year, as expected

Highlights of the period

— First quarter Fiscal 2025 consolidated revenues reached 6.4 billion euros, up +1.9% year-onyear including a negative currency impact of -2.0% and a net contribution from acquisitions and disposals of -0.8%. Organic revenue growth was +4.6%.

— Organic growth was impacted by a higher base due to the Rugby World Cup last year, partially offset by the Paralympics this year. Excluding these events, underlying organic growth in the first quarter was +4.9%.

— A portion of the organic growth was fueled by pricing which is currently trending around 3% for the quarter. The remaining part reflects net new business contribution and some volume growth.

— Food services organic growth was solid at +5.7%, while FM services grew at +2.4%, or +3.5% when excluding last year's Rugby World Cup ticketing activity. FM organic growth was impacted, particularly in Europe, by reduced activity at certain existing sites and lower volumes in project works.

— By geography:

•      North America achieved organic growth of +5.9%, driven by a strong increase in Sodexo Live! fueled by new business, strong activity in airline lounges, convention centers and stadiums, and in Corporate services supported by higher attendance and new site openings. Education was, however, impacted by lower volumes in Universities and negative net new contribution in Schools.

•      Europe was up +2.0% organically, or +2.7% excluding impacts from the two sporting events mentioned above, slowing from previous quarters notably due to lower activity in Continental Europe which was impacted by last year's contract losses and decline in project works. Healthcare & Seniors segments demonstrated positive momentum, benefiting from net new contribution and price adjustments.

•      Rest of the World was up +6.4% organically. This sustained strong performance was driven by robust growth in India, Brazil and Australia. While China is gradually recovering, Chile and Peru are affected by contract losses incurred last year.

— Sodexo continues to advance its ambition to lead in sustainable food and valued experiences:

•      The second edition of the international Sustainable Food Barometer, in partnership with Toluna Harris Interactive, confirms growing consumer interest in sustainable eating habits and highlights the Food Service sector's increasing role in driving this transition.

•      The third edition of the Sustainable Chef Challenge, Cook For Change, saw 330 chefs competing to create delicious, sustainable menus. During the ceremony held in Paris in November 2024, Adam Collison (UK & Ireland), Sandrine Leriche (France) and Michał Fabiszewski (Poland) were rewarded for their creativity and culinary excellence.

•      Partnering with Eaternity, Sodexo is assessing the impact of its recipes on the planet by calculating carbon emissions based on the products used, with implementation already underway in the U.S. and UK & Ireland.

— On January 1, 2025, Sodexo completed the acquisition of CRH Catering, a leading player in the convenience sector in the United States. This acquisition, announced in November 2024, strengthens the InReach offering with multichannel services and footprint on the U.S. East Coast. — Evolutions in the Sodexo Leadership Team:

•      After 26 years within the company, Anna Notarianni, Group Chief Impact Officer, has decided to leave the company. Her responsibilities have been integrated into the scope of Marc Rolland, Group General Secretary, whose role now includes sustainability, internal audit, legal, ethics & compliance, and global business services. Additionally, Jeanne Houssin, Group Chief Communications & Public Affairs Officer, has joined the Sodexo Leadership Team.

•      Alexandra Serizay, Chief Strategy and Services Innovation Officer, has also left the company. Dominique Guilhem has been appointed Group Chief Strategy Officer, overseeing the group's strategic planning process to ensure a strong alignment and consistency between strategic choices and global initiatives and programs. Dominique Guilhem has also joined the Sodexo Leadership team.

Outlook

Given our expectation of modest growth in the first half of the year and an acceleration in the second half, supported by the strong commercial momentum observed at the start of the year and the timing of net new business contributions, the full-year guidance is maintained:

— Organic revenue growth expected between +5.5% and +6.5%;

The underlying trend should be +6% to +7%, excluding the base effect of the Olympics, the Rugby World Cup and the leap year in Fiscal 2024.

— Underlying operating profit margin is anticipated to grow by +30 to 40 bps at constant exchange rates.

Conference call

Sodexo will hold a conference call (in English) today at 9:00 a.m. (Paris time), 8:00 a.m. (London time) to comment on its Q1 Fiscal 2025 revenues.

Those who wish to connect:

— From the UK: +44 121 281 8004, or

— From France: +33 1 70 91 87 04, or

— From the US: +1 718 705 8796,

Followed by the access code 07 26 13.

The live audio webcast will be available on www.sodexo.com

The press release, presentation and webcast will be available on the Group website www.sodexo.com in both the “Newsroom” section and the “Investors – Financial Results” section.

Financial calendar

These dates are indicative and may be subject to change without notice.

Regular updates are available in the calendar on our website www.sodexo.com

About Sodexo

Founded in Marseille in 1966 by Pierre Bellon, Sodexo is the global leader in sustainable food and valued experiences at every moment in life: learn, work, heal and play. The Group stands out for its independence, its founding family shareholding and its responsible business model. Thanks to its two activities of Food and Facilities Management Services, Sodexo meets all the challenges of everyday life with a dual goal: to improve the quality of life of our employees and those we serve, and contribute to the economic, social and environmental progress in the communities where we operate. For Sodexo, growth and social commitment go hand in hand. Our purpose is to create a better everyday for everyone to build a better life for all.

Sodexo is included in the CAC Next 20, Bloomberg France 40, CAC 40 ESG, CAC SBT 1.5, FTSE 4 Good and DJSI

indices.

Key figures

—     23.8 billion euros Fiscal 2024 consolidated revenues

—            423,000 employees as at August 31, 2024

—           #1 France-based private employer worldwide

Q1 Fiscal 2025 Activity Report

Continued growth in revenues, with Q1 Organic Growth of +4.6%, including 5.7% in Food services

REVENUES BY ZONE

REVENUES                                                                                                                                                                                                    ORGANIC                 EXTERNAL                CURRENCY                          TOTAL

(in million euros)                                                                                                                           Q1 FY25                    Q1 FY24                    GROWTH                   GROWTH                      EFFECT                      GROWTH

In the first quarter Fiscal 2025, Sodexo revenues reached 6.4 billion euros, up +1.9% year-on-year including a negative currency impact of -2.0% and a net contribution from acquisitions and disposals of -0.8%.

Consequently, organic growth for the first quarter Fiscal 2025 was +4.6%, or +4.9% when adjusted for the higher base from the Rugby World Cup last year, partially offset by the Paralympics this year. The slower growth compared to the previous quarters was primarily due to the impact on FM organic growth, particularly in Europe, impacted by reduced activity at certain existing sites and lower volumes in project works.

Organic growth in the quarter was driven by Food services, up +5.7%, whereas FM services were up +2.4%, or +3.5% excluding last year's Rugby World Cup ticketing activity.

A portion of the organic growth was fueled by pricing which is currently trending around 3% in the quarter. The remainder reflects the net new business contribution and some volume growth.

North America

REVENUES BY SEGMENT

(in million euros)                                                                                                                                                                         Q1 FY25                                    Q1 FY24                        RESTATED ORGANIC GROWTH⁽²⁾

⁽¹⁾  Since the first half of 2024, the Group has been reporting Sodexo Live! revenue separately; it was previously included in the Business & Administrations segment.

⁽²⁾  During Fiscal 2025, some contracts or operations have been reallocated between segments.

In the first quarter Fiscal 2025, North America revenues totaled 3.1 billion euros, up +5.9% organically driven by a strong increase in Sodexo Live! and Corporate, but partially impacted by lower volumes in Universities and the negative net new performance in Schools from the previous year.

Within Business & Administrations, organic growth reached +9.0%, propelled by new business, strong growth in Food services from continued return to office and cross-sales, as well as price increases.

Sodexo Live! organic growth was +24.8%, driven by significant increase in attendance at conference centers, stadiums and arenas along with some new business and some additional positive impact due to event timing. Airline lounges also saw strong growth driven by increased passengers count, new development, and favorable price adjustments.

Healthcare & Seniors organic growth was +4.3%, supported by strong performance in Healthcare through a combination of price increases, volume growth, and some cross-sales. This growth was somewhat offset by Seniors contract losses from prior year.

In Education, organic revenue growth was -0.8%, impacted by negative net new business contribution, lower enrollment in

Universities, and lower volumes due to unfavorable weather conditions and Election Day closures in Schools, partially offset by price increases.

Europe

REVENUES BY SEGMENT

(in million euros)                                                                                                                                                                         Q1 FY25                                   Q1 FY24                        RESTATED ORGANIC GROWTH⁽²⁾

⁽¹⁾  Since the first half of 2024, the Group has been reporting Sodexo Live! revenue separately; it was previously included in the Business & Administrations segment.

⁽²⁾  During Fiscal 2025, some contracts or operations have been reallocated between segments.

In Europe, first quarter Fiscal 2025 amounted to 2.2 billion euros, up +2.0% organically or +2.7% excluding impacts from the Rugby World Cup 2023 and the Paralympics 2024, slowing from previous quarters notably due to lower activities in the Netherlands, Norway and Germany which were impacted by last year's contract losses and decline in project activities.

In Business & Administrations, organic growth was +1.2%, benefiting from both price revisions and volume growth along with new openings in Belgium. Türkiye also contributed with very strong growth, mainly driven by pricing indexation. This was, however, hampered by certain site closures and lower hard FM project works.

Sodexo Live! organic growth was negative at -6.9%, affected by the negative net effect of the Rugby World Cup 2023 and the Paralympics 2024. Excluding this impact, restated organic growth was +0.4%, driven by higher volumes across Airport Lounges and Stadiums in the UK offset by lower tourist activity in France following the Olympics and unfavorable weather conditions.

Healthcare & Seniors organic growth stood at +7.4%, driven by volume growth, price revisions and the contribution of new business in France, as well as inflation pass-through in the UK.

Education organic revenue growth was +3.0%, reflecting positive impact of price revisions offset by the exit in the previous year of some low performing contracts particularly in France.

Rest of the World

REVENUES BY SEGMENT

(in million euros)                                                                                                                                                                         Q1 FY25                                   Q1 FY24                        RESTATED ORGANIC GROWTH⁽²⁾

⁽¹⁾  Since the first half of 2024, the Group has been reporting Sodexo Live! revenue separately; it was previously included in the Business & Administrations segment.

⁽²⁾  During Fiscal 2025, some contracts or operations have been reallocated between segments.

Rest of the World first quarter Fiscal 2025 revenues totaled 1.1 billion euros, up +6.4% organically. This sustained growth was driven by robust performance in India, Brazil, and Australia, along with a gradual recovery in China.

Business & Administrations organic growth was +6.0%. Growth remained particularly strong this quarter in India, driven by new business and increased volumes at existing sites, and in Australia, driven by additional volumes and robust development. In Brazil, growth was fueled by extra volumes and inflation pass-through, while Chile and Peru were impacted by previous year's site losses. In China, the environment remained challenging, but showing signs of recovery.

Sodexo Live! organic growth was +23.5% (principally airline lounges) benefiting from the opening of new lounges and the ramp-up of last year’s openings in Hong Kong.

Healthcare & Seniors organic growth was +6.8%, with strong growth in India and Chile, somewhat offset by moderate growth in Brazil and China.

Education organic growth was +10.8%, fueled by increased volumes and ramp ups in existing sites in Brazil and India.

CURRENCY EFFECTS

Exchange rate fluctuations do not generate operational risks because each subsidiary bills its revenues and incurs its expenses in the same currency.

                                                                                                                     AVERAGE RATE                                                                                                        CLOSING RATE

                                                                AVERAGE RATE                   AVERAGE RATE                           Q1 FY 2025                   CLOSING RATE                    CLOSING RATE                           11/30/2024

1€=                                                                                                  Q1 FY 2025                         Q1 FY 2024                  VS. Q1 FY 2024                    AT 11/30/2024                    AT 08/31/2024                     VS. 08/31/2024

The negative currency impact for first quarter Fiscal 2025 of -2.0% is primarily due to the depreciation of the US dollar against the euro during the summer of 2024, even though it has recovered since October. Additionally, the Brazilian real has been depreciating since May 2024, further contributing to the impact.

The currency effect is determined by applying the previous year’s average exchange rates to the current year figures.

FINANCIAL POSITION

Apart from the seasonal changes in working capital, there were no material changes in the Group's financial position as of November 30, 2024, relative to that presented in the Fiscal 2024 Universal Registration Document filed with the AMF on November 5, 2024.

PRINCIPAL RISKS AND UNCERTAINTIES

There were no significant changes to the principal risks and uncertainties identified by the Group in the Risk Factors section of the Fiscal 2024 Universal Registration Document filed with the AMF on November 5, 2024.

ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS

Growth excluding currency effect

The currency effect is determined by applying the previous year’s average exchange rates to the current year figures except in hyperinflationary economies where all figures are converted at the latest closing rate for both periods when the impact is significant. For Türkiye, despite being in hyperinflation, the average exchange rates of the previous period are used due to the lack of materiality.

Organic growth

Organic growth corresponds to the increase in revenue for a given period (the “current period”) compared to the revenue reported for the same period of the prior fiscal year, calculated using the exchange rate for the prior fiscal year; and excluding the impact of business acquisition (or gain of control) and divestment, as follows:

•     for businesses acquired (or gain of control) during the current period, revenue generated since the acquisition date is excluded from the organic growth calculation;

•     for businesses acquired (or gain of control) during the prior fiscal year, revenue generated during the current period up until the first anniversary date of the acquisition is excluded;

•     for businesses divested (or loss of control) during the prior fiscal year, revenue generated in the comparative period of the prior fiscal year until the divestment date is excluded;

•     for businesses divested (or loss of control) during the current fiscal year, revenue generated in the period commencing 12 months before the divestment date up to the end of the comparative period of the prior fiscal year is excluded.

Underlying operating profit margin

The Underlying operating profit margin corresponds to Underlying operating profit divided by revenues.

Underlying operating profit margin at constant rates

The Underlying operating profit margin at constant rates corresponds to Underlying operating profit divided by revenues, calculated by converting 2025 figures at Fiscal 2024 rates, except for countries with hyperinflationary economies if applicable.

Inter-segment restatements

Some contracts or operations have been reallocated between segments, with main impacts in North America between Healthcare & Seniors and Business & Administrations

Restated revenue breakdown for Fiscal 2024:

⁽¹⁾ Since the first half of 2024, the Group has been reporting Sodexo Live! revenue separately; it was previously included in the Business & Administrations segment.