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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CONSUMER CYCLICALS
- Sodexo's leading market position, large scale, and global operations contribute to its rating, alongside improved revenue visibility and resilience in profit margins post-spin-off.
- The stable outlook anticipates continued operating margin recovery and deleveraging consistent with the rating.
- The spin-off results in slightly slower revenue growth and a minor reduction in operating margin, offset by increased revenue visibility and stability.
- Rating headroom is tighter post-spin-off, with EBITDA net leverage just below their 2x sensitivity and modest post-dividend free cash flow margins below 1%, though Fitch see leverage declining to 1.7x by FY25.
- A disciplined financial policy, targeting reported EBITDA net leverage of 1x-2x, supports Sodexo's credit profile (reported continuing EBITDA net leverage was 2.4x at FY23).
- The company is compared favourably with peers like Compass Group PLC and Aramark for its diversified operations and strong market positions.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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