Sodexo reports strong Q3 2022 revenue recovery

Sodexo, the Paris based food and facilities management provider, improved its revenue in all business segments for Q3 2022 over the prior year period, boosted by return to the office following COVID, according to an earnings report. Highlights include:

• The company reported 18.3% revenue growth from 4.5 billion EUR ($4.68 billion) to 5.52 billion EUR ($5.74 billion).
• Business and administrations rose 26.6% from 2.19 billion EUR ($2.28 billion) to 2.88 billion EUR ($3 billion). Corporate services continued to benefit from the return to the office.
• Food services recovery reached 90% of fiscal 2019's level.
• Healthcare and seniors rose 4.6% from 1.2 billion EUR ($1.25 billion) to 1.5 billion EUR ($1.56 billion).
• On-site services rose 19.3% from 4.3 billion EUR ($4.47 billion) to 5.3 billion EUR ($5.51 billion).
• Benefits and reward services rose from 182 million EUR ($189.34 million) to 222 million EUR ($230.95 million).
• Business recovered to 97% of pre-COVID level due to strong activity in corporate services, universities and sports and leisure.

Shares traded today at $75.22 against a 52-week range of $69.45-$99.77.

"Growth in the third quarter has been strong in all activities, segments and geographies, helped by post-omicron on-site volume recovery and price revisions," Sophie Bellon, chairwoman and CEO, said in the press release. "Benefits and rewards services is accelerating in all regions."

The company confirmed its full year guidance. Fiscal 2022 organic growth is expected from 15% to 18%, while fiscal underlying operating profit is expected close to 5% at constant rates.