PARIS (AFP) - Shares in French food and restaurant group Sodexho Alliance were sharply lower in early trade, pressured by concerns about the company's outlook after in-line full-year sales.
Sodexho Alliance shares were trading down 4.59 percent at 21 euros while the CAC-40 index was up 3.14 points at 3,773.38 on Wednesday.
Sodexho earlier said it saw "considerable potential" in its core market and set targets for full-year 2005 underlying profit growth before currency effects of around five percent.
Sales for the full year to the end of August totalled 11.494 billion euros (14.13 billion dollars), down 1.6 percent from 11.687 billion a year earlier, in line with market expectations of 11.447-11.534 billion euros.
But analysts remained cautious on the company's outlook.
ING Financial analysts said in a note to clients: "Looking into the numbers our analyst expects that they are lining up to warn on 2005."
SG Securities said there was no major surprise in Sodexho's announcement, noting the company's sales were "fully in line" with its estimates and consensus expectations.
But SG Securities said the company's forecast for 2005 was disappointing.
"We estimate however that the market will continue to focus its attention on Sodexho's profitability issues. On that specific point we have to say that 2005 earnings guidance is rather disappointing," it said.
One London-based dealer added: "The company did not provide info on 2004 profit forecasts which may be a cause for investor concern."