Vending

Sodexo boosts 2023 revenue and earnings

Image: Adobe Stock.

October 27, 2023

Sodexo PLC, a Paris-based global foodservice contractor, lifted its 2023 revenue and earnings in double digits over 2022, boosted in part by post-COVID return to office activity in North America, according to an earnings report. Highlights include:

• Group revenue rose 12.3% from €21.1 billion ($22.35 billion) to €23.7 billion ($25.1 billion).
• Net profit rose 14.2% from €695 million ($736.2 million) to €794 million ($841.06 million).
• EPS rose 29.9% from €4.78 ($4.78) to €6.21 ($6.58).
• The dividend rose 29.2% from €2.40 ($2.54) to €3.10 ($3.28).
• Organic revenue rose 11.6% compared to previous guidance of 11%.
• North America organic growth was 13.9% with growth in all segments, especially business and administrations due to return to office and average spend in Sodexo Live!.
• Europe organic growth was 7.5% with growth in all segments.
• Rest of world organic growth was 11.5%, with growth in corporate services, energy and resources, except in China where the post-COVID environment still affects business and administrations.

For fiscal 2024 and 2025, the company expects organic growth between 6% and 8% per year.

The company also expects to divest its benefits and rewards services, Pluxee, in 2024.

Shares traded today at $21.57 against a 52-week range of $16.65 to $22.69.

"I would like to warmly thank our teams for this strong year," Sophie Bellon, CEO and chairwoman, said in the press release. "Thanks to their hard work and unprecedented engagement, we exceeded our guidance while executing at pace on our strategy."