ISSY-LES-MOULINEAUX, France -- Sodexo's revenues for the nine months totaled €13.8 billion ($18.8 billion), dipping 2.8% from €14.2 billion during the same period last year. Organic revenue grew 2.3%.
Sodexo is the world's second-largest catering service provider, exceeded only by Compass Group.
Nine-month revenue from onsite services, which make up the bulk of the French company's business, was €13.27 billion ($18.08 billion), down slightly from €13.64 billion ($18.58 billion) in the prior year. Organic growth was 1.7% year over year.
Onsite services revenue in North America fell 1.7%. Organic revenue climbed 3.7% driven by strong demand from corporate customers and new facilities management contracts with such clients as Unilever and Walt Disney World Resorts.
In Europe, onsite revenue ticked up 0.1% and only 0.3% on an organic basis, as clients continued to reduce catering services to cut costs. In the rest of the world, onsite revenue tumbled 12.2% and 0.7% on an organic basis.
Sodexo said it now expects a slightly slower fourth quarter than initially forecast due to the delayed startup of some major contracts. The company now estimates organic revenue growth between 2.2% and 2.5% for fiscal 2014, down from its April projection from 2.5% to 3%.
For fiscal 2014, the company confirmed its objective to achieve growth in operating profit of 11% at constant exchange rates and an operating margin of 5.6% for the year, up 0.4% compared with last year.