Sodexo has reported organic revenue growth of 2% for its 2026 financial year, with stronger-than-expected activity during the final quarter.
The food and facilities management group recorded consolidated revenues of €23.96 billion for the year ending 31 August 2026, compared with €24.07 billion the previous year. Reported revenue declined by 0.5%, largely because organic growth and acquisitions were offset by adverse currency movements.
Underlying operating profit fell by 28.9% to €810 million, while the corresponding margin declined from 4.7% to 3.4%. The company attributed the reduction to contract and asset reviews, investment in its capabilities and wider operational factors.
Group net profit was €304 million, down from €695 million in 2025, while free cash flow reached €379 million. Net debt stood at €2.9 billion at the end of the financial year.
Commercial performance included a client retention rate of 94.4%, while development reached 7.7%.
European organic revenue increased by 2.1%, supported by growth in healthcare and senior services. Organic growth across the group’s facilities management operations reached 2.9%, while food services grew by 1.6%.
Sodexo has maintained its outlook for the 2027 financial year, forecasting organic revenue growth of between 2% and 3%. Its underlying operating profit margin is expected to remain broadly in line with the 3.4% achieved in 2026.
The company is implementing its Shift & Grow 2030 strategy, which seeks to restore competitiveness and accelerate growth over the coming years.
Jean Renton, chief executive of Sodexo UK & Ireland, said: “There’s real momentum across Sodexo UK & Ireland, and I’m incredibly proud of what our teams are achieving.
“Since launching our Shift & Grow 2030 strategy, we’ve moved quickly from ambition to action, with encouraging results already emerging.
“When I speak to clients, I’m hearing first-hand how expectations are changing. They want fresh thinking, innovation and partners who truly understand their challenges and can deliver. That’s exactly where we’re focusing our energy, and it’s opening up exciting opportunities for our business.”
Recent contract wins include agreements with Homerton University Hospital and George Watson’s College. Sodexo has also extended relationships with Transport for London, the Scottish Parliament and HM Naval Base Portsmouth.
The group completed its acquisition of Olive Catering after the financial year ended, strengthening its UK food services portfolio.
Ms Renton added: “I’m particularly proud that we’re not simply retaining valued partnerships, but continually reimagining our services and bringing new ideas, technology and food experiences to the table.
“Our recent acquisition of Olive Catering is another exciting step, strengthening our food portfolio, welcoming new clients and talented colleagues, and giving us even greater opportunities to grow.”
During the year, Sodexo reported progress against its sustainability targets, including achieving its goal of reducing food waste by 50%. Deployment of its WasteWatch programme reached 85.8%, while employees received an average of 13.6 hours of training.
You Might Also Like:
Ms Renton said: “We know there’s more to do, but I’m confident about where we’re heading. We have a clear strategy, we’re investing in the right areas and, most importantly, we have brilliant people who are determined to deliver.
“We’re building a more competitive, more innovative Sodexo, and I’m confident in our sustainable growth for the future.”
The full Sodexo 2026 financial results are available on the company’s website.
