Vending

Sodexo improves earnings on 2021 sales decline

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October 27, 2021

Sodexo reported a nearly 10% one-year decline in sales in fiscal 2021, but managed to improve earnings for the fiscal year ending Aug. 31, according to an earnings release.

Sodexo's 2021 revenue was 17.4 billion euro ($20.21 billion), a 9.8% decline from 2020, including a negative net contribution from acquisitions. As a result, the organic decline was 5.6%, with the combination of a first half down 21.7%, followed by a second half 18.1% increase as the comparable base reflected the start of the pandemic in the previous year.

Net profit improved from a 315 million euro ($265.88 million) loss in 2020 to a 139 million euro ($161.45 million) gain in 2021.

Earnings per share improved from a 2.16 euro ($2.51) loss in 2020 to a 0.95 euro ($1.10) gain in 2021.

On-site services revenues declined by 6% for the year.

Following the deepest downturn ever registered due to the pandemic in the second half fiscal 2020, activity has picked up progressively quarter by quarter, reaching 87% of pre-COVID fiscal 2019 revenues at constant rates.

By the fourth quarter, healthcare and seniors picked back up to 100%, and schools to 99% of pre-COVID levels. However, business and administrations remained impacted by the slow return to work in corporate services, which was at 79% of pre-COVID levels, and the recovery in sports and leisure at only 43% of pre-COVID levels.

"Recovery in revenues has been progressive, quarter on quarter," Sophie Bellon, chairwoman and interim CEO, said in the press release. "By the fourth quarter, the group reached 87% of fiscal 2019 activity, with healthcare, schools and benefits and rewards services already back up at pre-COVID levels."

Fiscal organic growth is expected between 15% and 18% for 2022.

Shares traded at $95 today against a 52-week range of $63.25-$105.79.

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