Net profit at Sodexho Alliance was down €30m (£20.5m) in the first half of 2004/05 as a result of the recent class action suit in the USA.
Profits fell by 31.4% from €97m (£66.1m) to €67m (£45.7m), excluding the effects of an increasingly robust euro.
The settlement of the case, in which African American managers accused Sodexho of institutionalised racism, wiped €40m (£27.2m) off the French catering giant's books.
The company did not admit liability and said it made the payment on 27 April "to avoid protracted legal proceedings".
Earnings before interest, taxes, depreciation and amortisation (EBITDA) were down to €278m (£189.6m), a fall of 4.1% from €281m (£191.6m).
Excluding the currency effect, EBITDA was up by 3.1%.
In the UK and Ireland, EBITDA more than doubled to €11m (£7.5m) while earnings fell by 2.1% before currency effects.
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