July 7, 2020 / 5:09 AM / a month ago

BRIEF-Sodexo Expects About 27% Decline In Q4 Revenue

July 7 (Reuters) -

* Q3 REVENUE DOWN ORGANICALLY AT 29.9%, BETTER THAN EARLY-APRIL HYPOTHESIS OF -33%

* UNDERLYING OPERATING PROFIT FLOW-THROUGH HAS IMPROVED MONTH BY MONTH : NOW BETTER THAN HYPOTHESIS OF 25% ANNOUNCED IN APRIL

* FREE CASH FLOW IS IN LINE TO ACHIEVE H2 IN THE RANGE OF EUR -200 MILLION AND EUR +200 MILLION

* Q3 TOTAL GROUP REVENUE EUR 3.91 BILLION VERSUS EUR 5.68 BILLION YEAR AGO

* THE PANDEMIC IS STILL STRONG IN NORTH AMERICA, LATIN AMERICA AND INDIA

* EXPECTS Q4 REVENUE TO BE DOWN CIRCA 27%, VERSUS ORIGINAL HYPOTHESIS IN APRIL OF -15%

* MORE PRUDENT HYPOTHESES FOR Q4 REVENUES COMPENSATED BY BETTER UNDERLYING OPERATING PROFIT FLOW-THROUGH IN H2

* H2 DECLINE IS NOW EXPECTED TO BE 28%, OR AROUND EUR 3 BILLION AND 13.7% FOR FULL YEAR

* ESTIMATES UNDERLYING OPERATING PROFIT FLOW-THROUGH IN H2 SHOULD BE BETWEEN 20 AND 23% OF REVENUE SHORTFALL Source text for Eikon: Further company coverage: [ ] (Gdansk Newsroom)

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