French food caterer Sodexo reports a 3.7% increase in underlying net profit to €785m for the year ended 31 August 2025. The company’s underlying EPS was €5.37, with an improved operating margin of 4.7%.

Sodexo attributes margin growth to procurement savings and Global Business Services benefits. Consolidated revenues for the year reached €24.1bn, with a 1.2% increase. Organic expansion was 3.3%, offset by currency headwinds and acquisition effects.

Free cash flow for Sodexo was €459m, with well-contained working capital and 2% of revenue spent on capital expenditure. Net debt rose to €2.7bn, primarily due to an exceptional tax outflow. Thierry Delaporte takes over as CEO on 10 November 2025.

Looking forward, Sodexo expects a slightly lower operating profit margin in fiscal 2026. The group projects organic revenue growth of 1.5–2.5%, supported by pricing contributions. Management notes a one-off reclassification related to a large contract renewal.

Read more at Yahoo Finance: Sodexo posts rise in Q3 2025