Sodexo warns of deeper fall in sales as coronavirus persists

The French firm, which provides catering for businesses, industrial sites, the military, government agencies, hospitals, schools and sports events, said it expects sales for the fourth quarter ending on August 31 to fall 27 percent.

Reuters

July 07, 2020 / 13:52 IST

Sodexo warned on Tuesday that its fourth-quarter and half-year sales will fall more sharply than previously expected as the coronavirus pandemic remains strong in North America, Latin America and India.

The French firm, which provides catering for businesses, industrial sites, the military, government agencies, hospitals, schools and sports events, said it expects sales for the fourth quarter ending on August 31 to fall 27 percent.

It forecast a 28 percent slump of around 3 billion euros ($3.4 billion) in the second half of its fiscal year.

The Paris-based firm in April had forecast a 15 percent slump in the fourth quarter and a 25 percent fall for the second half.

Sodexo's third-quarter sales fell a better-than-expected 29.9 percent to 3.9 billion euros versus an anticipated 33 percent fall, with its education and sports and leisure businesses the hardest hit.

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