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France's Sodexo warns of slower fourth-quarter growth after strong third quarter

France's Sodexo warns of slower fourth-quarter growth after strong third quarter
FILE PHOTO: The logo of French food services and facilities management group Sodexo is seen at the company headquarters in Issy-les-Moulineaux near Paris, France, March 18, 2016. REUTERS/Gonzalo Fuentes/File Photo -
Gonzalo Fuentes(Reuters)
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PARIS (Reuters) – French food services group Sodexo <EXHO.PA> said on Monday that sales growth accelerated in the third quarter but it warned that some contract losses in North America would weigh on fourth-quarter growth.

Sodexo, which is the world’s second-largest catering company after Compass Group <CPG.L>, now expects sales growth for the full year to be at the top-end of its guided range but underlying operating profit margin to be at the low end.

Third-quarter organic sales growth accelerated to 4.2 percent from 3.6 percent in the second quarter, reflecting robust growth in all business segments and in North America.

For the full year ending Aug. 31, Sodexo now expects organic revenue growth of around 3%, at the high end of a guided range of 2-3% and an underlying operating profit margin of 5.5%, at the low end of a guided range of 5.5-5.7%.

(Reporting by Dominique Vidalon; Editing by GV De Clercq)

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