Sodexo S/Adr

Good morning, everyone, and thank you for joining us for our Q3 fiscal 2026 revenues call. I'm Juliette Klein, head of investor relations. With me on the call today is Sebastien De Tramasure, our CFO, to take us through the presentation. After Sebastien's remarks, we will open the line to take your questions. If you have additional questions after the call, please don't hesitate to reach out to the IR team. Before we start, I would also like to remind you that we will be hosting our investor update on July 16th. With that, I now hand over to Sebastien.

Thank you, Juliette. Good morning, everyone, and thank you for joining us today. So I will start with a brief overview of our third quarter performance and our updated outlook for the year before opening the call for your questions. And as usual, the appendix includes the detailed segment breakdown by geography, as well as the nine-month performance for those of you who would like to see the year-to-date view. In the first quarter of fiscal 2026, Solexo delivered revenue of 6.2 billion euros, with organic revenue growth of 2% above our expectations. Reported revenue growth included a negative currency effect of 2.5%, mainly due to the depreciation of the US dollar, while acquisitions contributed to 1.4%, mainly from Grupo Mediterranea. So now looking at third quarter performance by geography. In North America, organic growth was minus 0.1% or plus 2.2%, excluding the effect of the contract reclassification we discussed at our fiscal H1. Healthcare and seniors continued to perform well. Solexolide exceeded expectations driven by a busy events calendar, and many more. Beyond attendance, we also saw higher spend uplift, reflecting the success of our offerings, innovative concepts, brand partnerships across the portfolio. These positives were partly offset by the impact of Prior contract losses in education. In Europe, organic growth was plus 0.6%, reflecting the impact of a large IFM contract exit in business and administration from prior year and continued softer activity in education. Healthcare and senior remained robust, while there was a particular high comparable for Sodexo Live following a strong prior year activity. In the rest of the world, organic growth was splashed 10.6%, supported mainly by new contract ramp-ups and additional project work, especially in energy and resources, with a strong contribution across multiple geographies. Overall, our third quarter performance was stronger than anticipated, driven mainly by robust activity at Select for Life North America, more projects in the rest of the world, and overall more resilient volumes trend than projected in our guidance. As a result, we are increasing our fiscal 2026 organic revenue growth guidance and now expect growth between 1.2% and 1.5% compared with 0.5% to 1% previously. This updated guidance reflects both our year-to-date performance and our current expectation for the remainder of the year. At the same time, we are mentioning our underlying operating profit margin guidance of between 3.2% and 3.4%. And to reiterate what we said as your results, our focus remains on strengthening the business over the medium term. We continue to invest in commercial capabilities, competitiveness, supply, and Technology, while maintaining a close watch over the external environment and a prudent view of the remainder of the fiscal year. Finally, in two weeks' time, on July 16, we will host our investor update in Paris, where Thierry, I and the team will present our execution roadmap and medium-term ambition. We look forward to seeing many of you there. With that, I'm happy to take your questions.

Thank you. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touch-tone telephone. To remove yourself from the question queue, please press star N2. Please pick up the receiver when asking questions. Anyone who has a question may press star N1 at this time. First question is from Estelle Wayne-Grodd, JP Morgan.