July 8, 2019 / 5:05 AM / in 9 days

France's Sodexo warns of slower Q4 growth after strong Q3

PARIS, July 8 (Reuters) - French food services group Sodexo 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, 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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