Issy-les-Moulineaux, October 23, 2025 Sodexo (Euronext Paris FR 0000121220-OTC: SDXAY) Fiscal 2025 results: Organic revenue growth of +3.3%, or +3.7% underlying1Underlying operating profit margin at 4.7%, up +10bps at constant currenciesUnderlying group net profit at 785 million euros, up +3.7% at constant currenciesSolid free cashflow; net debt/EBITDA ratio of 1.8xProposed dividend of 2.70 euros, in line with the Group dividend policy Evolution within the governance Appointment of Thierry Delaporte as Chi ...

Core Insights - RIT Capital Partners holds $19,839,800 worth of Smurfit Westrock Plc shares, representing 2.49% of its portfolio, indicating confidence in the company's potential [1] - Seaport Global Securities upgraded Smurfit Westrock Plc from "Neutral" to "Buy," setting a price target of $52, reflecting optimism about the stock's future performance [2] - The investment firm believes the recent share price decline is due to investor concerns regarding European containerboard capacity expansion, but anticipates improvements in pricing for recycled containerboard medium [3] Company Overview - Smurfit Westrock Plc is engaged in the development and supply of packaging solutions globally, including corrugated boards, solid boards, and hexacomb packaging for various applications [5] - The company is expected to present a five-year strategy plan in February 2026, which may include $400 million in initial synergies, asset repositioning, cost reductions, and growth opportunities in its North American box business [4]

Core Insights - The EAT-Lancet 2025 Report emphasizes the potential of transforming global diets to prevent nearly 15 million premature deaths annually while reducing greenhouse gas emissions by over 50% [2] - Sodexo plays a pivotal role in promoting sustainable eating habits and has already implemented key recommendations from the EAT-Lancet Report [1][4] Company Initiatives - Sodexo serves 80 million consumers daily, focusing on reconciling pleasure, health, and environmental respect to support sustainable food systems [4] - The company has a sustainability roadmap called Better Tomorrow, which includes training chefs and adapting offerings to local preferences [5] - Sodexo aims to achieve 70% low-carbon main dishes by 2030, defining low-carbon meals as those producing 0.9 kg of CO₂e or less [7] Collaborative Efforts - In partnership with WWF, Sodexo has successfully reduced meal-related emissions at Cytiva's restaurant in Sweden from 1.5 kg CO₂e to 0.6 kg CO₂e per serving [8] - The company emphasizes the importance of collaboration in bridging the gap between scientific recommendations and actionable strategies [11][12] Future Outlook - The upcoming launch of Better Tomorrow 2028 will further enhance Sodexo's contributions to building healthier and more sustainable food systems [12] - Sodexo's commitment to sustainability is reflected in its inclusion in various indices such as CAC Next 20 and FTSE 4 Good [14]

Group 1 - Smurfit Westrock is considered a cheap stock with potential for the next 5 years, with JPMorgan raising its price target to $61 from $60 while maintaining an Overweight rating [1][3] - In Q2, Smurfit Westrock reported a significant year-over-year revenue increase of 147.56%, totaling $7.94 billion, and achieved an Adjusted EBITDA of $1.213 billion, resulting in a 15.3% Adjusted EBITDA Margin [2] - The North American segment generated $4.8 billion in net sales with a 15.8% Adjusted EBITDA Margin, while Latin America showed exceptional performance with an Adjusted EBITDA Margin exceeding 23% [3] Group 2 - Smurfit Westrock specializes in manufacturing, distributing, and selling containerboard, corrugated containers, and other paper-based packaging products [4]

Core Insights - Sodexo reported a total of 147,454,887 shares as of September 30, 2025, with actual voting rights amounting to 216,943,620 and theoretical voting rights at 218,461,882 [1][2]. Company Overview - Founded in 1966 in Marseille by Pierre Bellon, Sodexo is a global leader in sustainable food and valued experiences across various life moments, including learning, working, healing, and playing [3]. - The company is characterized by its independence, family shareholding, and responsible business model, aiming to improve the quality of life for employees and the communities it serves [3]. - Sodexo operates in two main sectors: Food and Facilities Management Services, focusing on both growth and social commitment [3]. - The company is included in several indices, such as CAC Next 20, Bloomberg France 40, CAC SBT 1.5, FTSE 4 Good, and DJSI [3]. Key Figures - For fiscal 2024, Sodexo reported consolidated revenues of 23.8 billion euros [6]. - As of August 31, 2024, the company employed 423,000 individuals and served 80 million consumers daily across 45 countries [6]. - As of June 30, 2025, Sodexo's market capitalization was 7.7 billion euros [6].

Core Points - Thierry Delaporte has been appointed as the new Group Chief Executive Officer of Sodexo, effective November 10, 2025, following a thorough selection process [1] - The governance structure will evolve with the separation of the roles of Chairwoman and CEO, with Sophie Bellon transitioning to a non-executive Chairwoman role [2] - The Lead Director position will be maintained, with Gilles Pélisson succeeding Luc Messier as Lead Independent Director, effective November 10, 2025 [3] Leadership Transition - Sophie Bellon expressed gratitude for the efforts of Sodexo teams and emphasized readiness for a new growth chapter, highlighting confidence in Thierry Delaporte's leadership [4] - Gilles Pélisson noted that Delaporte's appointment is the result of a structured process, emphasizing his extensive experience and fit with Sodexo's values [4] - François-Xavier Bellon stated that the dissociation of governance is a significant step forward and expressed excitement for Delaporte's leadership [4] Thierry Delaporte's Background - Delaporte has a strong international leadership background, having held various roles across Europe, the U.S., South America, and Asia-Pacific, with expertise in financial leadership and operational transformation [5] - He has held CFO roles at Capgemini and served as CEO of Wipro Ltd., where he led significant strategic repositioning and growth [6][8] - Delaporte is also committed to social impact, co-founding an organization focused on youth inclusion and serving on the Board of Saint-Gobain [8] Company Overview - Sodexo, founded in 1966, is a global leader in sustainable food and facilities management services, aiming to improve quality of life and contribute to social progress [10] - The company operates in 45 countries, serving 80 million consumers daily, and has consolidated revenues of 23.8 billion euros for fiscal 2024 [13] - As of June 30, 2025, Sodexo's market capitalization stands at 7.7 billion euros, and it is recognized as the number one France-based private employer worldwide [13]

Core Viewpoint - The article discusses the importance of fundamental, income-oriented, long-term analysis in investment strategies across various sectors in developed markets globally [1]. Group 1 - Buy-side hedge professionals are focusing on conducting thorough analysis to identify investment opportunities [1]. - The emphasis is on a long-term investment approach, which is crucial for sustainable returns [1]. Group 2 - The article encourages engagement and discussion among professionals in the investment community to share ideas and insights [1].

Core Points - Italian prosecutors are pursuing judicial administration for shoemaker Tod's due to alleged worker abuses in its supply chain [1] - This case is part of a broader trend of scrutiny on labor practices within the fashion industry, impacting the reputation of several companies [1] Company Summary - Tod's is facing legal challenges that could affect its operational management and public image due to accusations of labor violations [1] - The situation highlights the increasing regulatory focus on ethical labor practices in the fashion sector, which may lead to stricter compliance requirements for companies [1] Industry Summary - The fashion industry is experiencing heightened scrutiny regarding supply chain labor practices, with multiple companies facing similar allegations [1] - This trend may result in significant changes in industry standards and practices, as companies strive to improve their labor conditions to avoid legal repercussions [1]

Core Points - Smurfit Westrock plc plans to release its financial results for Q3 2025 on October 29, 2025, at 6:30 am ET [1] - The earnings release and related materials will be accessible on the company's website [1] - A webcast for analysts and institutional investors will be hosted by the senior management team at 7:30 am ET on the same day [1]

Core Viewpoint - Seaport Global Securities upgraded Smurfit Westrock from Neutral to Buy, citing an attractive valuation and improved sentiment in the European containerboard market [1][2] Group 1: Upgrade and Valuation - Smurfit Westrock's stock was upgraded to Buy with a price target of $52.00, reflecting a shift in analyst sentiment [1] - The stock is currently trading at approximately 6.3 times its 2026 EBITDA forecast, which is competitive compared to the consensus estimate of about 6.2 times [2] Group 2: Market Sentiment and Capacity - Analysts expect sentiment regarding European containerboard pricing to improve as capacity closures increase due to weak profitability [2] - The company had previously faced caution from analysts due to its higher exposure to the European market, where new containerboard capacity was anticipated [1] Group 3: Strategic Roadmap - A potential re-rating of the stock is anticipated when the company reveals its five-year strategic roadmap in February, which will outline operational goals through 2030 [3] - The strategic plan is expected to elaborate on $400 million in synergy targets and address asset repositioning, cost reductions, and capital expenditure needs, particularly in the SBS business [3]