Sodexo lifts half-year results on pandemic recovery

Sodexo, a Paris-based provider of food and convenience services, lifted its 2023 half year revenue and profit boosted by its post-COVID recovery, according to a press release.

Highlights include:

• Revenue growth rose 17.8% from €10.26 billion ($11.21 billion) in half year 2022 to €12.08 billion ($13.2 billion) for half year 2023, with organic growth rising 13.4%.
• On-site services organic revenue growth was 12.9% for the period, benefiting from the ongoing post-COVID ramp-up, particularly in corporate services, sports and leisure and universities, as well as above 5% pricing effect.
• Net new development began in the second quarter, contributing 0.5% to the first half growth.
• Food services recovered strongly in the second half, rising 20% organically. Food services represented 65% of total on-site services revenues during the period and increased 59%.
• Group net profit rose 30.6% from €337 million ($368.18 million) to €440 million ($480.71 million).
• Underlying earnings per share rose 40% from €2.32 ($2.53) to €3.25 ($3.55).

The company also announced plans to spin off its benefits and rewards services in 2024.

"The performance in the first half is solid," Sophie Bellon, chairwoman and CEO, said in the press release. "In on-site services, despite inflation, the post-COVID ramp-up in volumes, mitigation actions and pricing have helped us to improve our margins.

"Food inflation has remained high and is likely to remain so in the second half. In benefits and rewards services, growth and profitability have been better than expected."

Fiscal 2023 organic growth is now expected to increase 11% while underlying operating profit margin is expected to be close to 5.5% at constant rates.