Vending

Sodexo boosts HY 2022 sales, earnings despite COVID

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April 1, 2022

Sodexo, the Paris-based global food and facilities services provider, reported a nearly 20% gain in first fiscal half 2022 revenue over the prior year despite the Omnicron variant, according to an earnings report.

Revenue rose 19.4% from €8.59 billion ($9.48 million) from the first fiscal half of 2021 to €10.26 billion ($11.32 billion) for first fiscal half of 2022, despite the Omnicron variant, with recovery coming in all segments that were impacted by COVID .

Net profit rose tenfold from €33 million ($36.41 million) to €337 million ($371.85 million) in the comparative periods while earnings per share jumped tenfold from €0.23 (25 cents) to €2.30 ($2.54). Highlights include:

• Onsite services organic revenue grew 17%.
• Business and administrations organic growth was 19.5%, reflecting strong recovery in corporate services that are up to 89% of pre-COIVD levels in the second quarter due to a gradual return to the workplace.
• Healthcare and seniors organic growth was 5%.
• Education's organic growth was 29.5%, with recovery especially strong in North America universities.

Shares traded today at $84.63 against a 52-week range of $69.45-$100.78.

"Revenue growth and margins improvement have been strong in this first half, reflecting the solid recovery in education, corporate services and sports and leisure segments," Sophie Bellon, CEO and chairwoman, said in a press release. "Omicron did have an impact on the recovery in the second quarter, but we are seeing a pick-up since the end of February."

The company expects fiscal 2022 organic growth to be around the bottom of the range of 15% to 18%.

For an update on how the coronavirus pandemic has affected convenience services, click here.