Sodexo Shares Fall 16% as Profit Halves

Sodexo SA shares plunged over 16% after cutting full‑year organic revenue growth to 0.5‑1% and profit margin to 3.2‑3.4%.
First‑half underlying operating profit fell 32% YoY to €442 million, with net profit halving to €188 million and EPS dropping to €1.29.
Net debt rose to €3.58 billion, pushing net‑debt‑to‑EBITDA to 2.7×, above the company’s 1‑2× target range.
Analysts split, Jefferies maintains “buy” with €55 target, while Morgan Stanley rates “underweight” with €45 target, citing prolonged turnaround.