Sodexo S/Adr (SDXAY) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone. Welcome to our Q1 fiscal 2026 revenue call. On the call today is Sébastien Dutramazur, our CFO, to take us through the presentation. After Sébastien's remark, we will open the line to take your questions. We'll ask you to please limit yourself to two questions and one follow-up. Please get back to the IR team if you have any further questions after the call. With that, I'll now hand over to Sébastien. Thank you, Juliette. And good morning, everyone. I wish you all a very happy, healthy, and successful 2026. And thank you for joining us today. So I will start this call with a brief look at our first quarter performance before I touch on our operational priorities and our outlook for the year. And then I will be happy to take your questions. So in the first quarter of fiscal 2026, So Nexo delivered revenue of 6.3 billion euros, and this is broadly in line with our expectation. Organic revenue growth was 1.8%, while reported revenue were impacted by a negative 4% currency effect, with a negligible contribution from acquisitions and disposal. So looking now at our performance by geography. In North America, organic growth was minus 1.5%. This reflects several known factors, including contract exit in education and business and administration last year, as well as a strong prior year comparison for Sodexo Live, as we had exceptional event activity in the first two quarters of last fiscal year. And these effects were partially offset by contributions from the new healthcare contracts. We enter into the fourth quarter of last fiscal year. In business and administration, while we had anticipated a negative trend due to the contract exit I just mentioned, it was amplified by scope changes at a few larger accounts and to a lesser extent by external elem...