Q1 organic revenue rises 4.6 vs consensus of 5.3
Q1 revenue at 6.4 bln euros vs 6.5 bln euros expected
48.4 of revenue from the U.S., 34.7 from Europe

Jan 7 Reuters French food caterer Sodexo reported a nearly 5 rise in its firstquarter organic revenue on Tuesday, missing market expectations, as robust growth in India, Brazil and Australia was offset by decreased activity in Continental Europe.

Consolidated revenue was 6.4 billion euros 6.7 billion in the three months through November, compared with the 6.5 billion expected by analysts in a companyprovided consensus and 6.3 billion a year earlier.

European growth of 2 was weighed down by lowerthanexpected volumes in Norway, Germany and the Netherlands due to a contract loss in the facility management division and the closure of some facilities last year, Chief Financial Officer Sebastien de Tramasure said on a call with journalists.

Moreover, the gap with the consensus is mainly due to the Europe zone, he added.

During the past years, the catering sector has benefited from tailwinds such as inflation which led to record outsourcing and volumes, boosting growth..

The Francebased group39;s growth came on the back of a 3 increase in pricing in the first quarter, it said. Price hikes however continued to slow down after reaching 4 in the fiscal year 2024 as Sodexo continues to pass through inflation.

It also benefited from 5.9 organic growth in its key North America market, which accounted for 48.4 of its total…