PARIS -- Sodexo's first-quarter sales fell 1.9% due to the strength of the euro, which more than offset sales growth.
The French contract foodservice and facilities management giant said it performed best in the U.S., where sales rose 5.1% during the first quarter. The euro's strength against the U.S. dollar, the British pound and other currencies cost Sodexo about 4.9% of its revenue.
Sales in the three-month period ended in November declined to €4.86 billion ($6.6 billion) from €4.95 billion in the comparable year-earlier period. Sales increased a marginal 0.5% in Europe and the United Kingdom, and fell 0.2% in the rest of the world.
Excluding the effects of currency fluctuations and mergers and acquisitions, first-quarter sales grew 2.7%. Sodexo said it is on track to post annual revenue growth of between 2.5% and 3%, again excluding the effects of currency swings and M&A activities.
"Sodexo continued to demonstrate robust organic growth in the first quarter," said chief executive Michel Landel. "Accelerated growth in North America and the development of facilities management services confirm this."