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French food group Sodexo reported slower quarterly sales growth on Tuesday, missing market expectations, citing a slowdown in China and a change in how it recognizes revenue from a major project in Australia.
Shares in the Paris-based group, which launched shopping voucher company Bloxi in early February, were down 5.5% by 0910 GMT.
“The slowdown in China is mainly affecting the technology sector, especially the corporate services sector,” Sebastien de Tramasor, the company’s chief financial officer, told analysts on a call.
But he added that Sodexo’s position in China remains very strong and that it strongly believes in the long-term potential of the market. Sodexo did not provide country-specific revenue figures.
Group revenue rose 6.8% to 6.07 billion euros ($6.51 billion) in the third quarter to May 31, compared with a year earlier. That was below the consensus forecast of 6.11 billion euros the company had provided.
Excluding the impact of a change in revenue recognition for a major energy and resources project in Australia, organic growth was 7.2% in the quarter, the company said.
Sodexo said organic growth slowed compared to the previous three-month period due to lower pricing effects, higher comparables and the positive impact of a leap year in the second quarter.
The company did not provide a growth figure for the second quarter. Organic growth was 8.5% in the first half of the fiscal year.
Sodexo said about half of organic growth was driven by price increases, which fell to less than 4% in the quarter, compared with more than 5% a year ago.
The company, which will provide catering services for the Olympic and Paralympic Games in Paris this summer, confirmed its forecast for the year to the end of August.
