Sodexo Faces Challenges Amid Trump Policies and Enrollment Slowdown

French food service provider Sodexo reported that it expects its revenue and margin growth to align with the lower spectrum of its 2025 projections. The firm's Chief Financial Officer, Sébastien de Tramasure, highlighted concerns that U.S. President Donald Trump's policies could affect Sodexo's university and healthcare operations.

De Tramasure indicated that reduced university enrollments, especially in the U.S. Northeast and Midwest, pose a significant challenge. The company identified this trend as a potential risk as early as March. Federal aid reductions linked to President Trump's policies could further impact Sodexo's performance in these key segments.

Sodexo, which garners nearly half of its revenue from North America, issued a profit warning in March, citing weak results in its education and healthcare businesses. The company's North American organic growth decelerated to 1.2% in the third quarter, a stark difference from the 9% growth in the previous year. Despite these challenges, Sodexo's revenue increased slightly to 6.12 billion euros, surpassing market expectations.

(With inputs from agencies.)