Published on Jan 5, 2024 at 8:53 am
(Update: comments from the CFO)
PARIS (Agefi-Dow Jones)–The collective catering group Sodexo, which plans to list its meal voucher and Pluxee gift voucher business on Euronext Paris on February 1, confirmed on Friday its financial objectives for the financial year ending at the end of August 2024 and the following, after an increase in its turnover in line with its expectations in the first quarter.
The company has confirmed that it is targeting for the 2023-2024 and 2024-2025 financial years, excluding Pluxee, organic revenue growth of between 6% and 8% per year, while its operating margin is expected to increase by 30 to 40 basis points per year, at constant exchange rates. It stood at 5.6% for the 2022-2023 financial year.
During the quarter from September to November 2023, Sodexo achieved turnover, excluding Pluxee, of 6.3 billion euros, an increase of 3.1% in published data. The group was penalized by a negative exchange rate effect of 4.8%, “resulting from the appreciation of the euro against most currencies”. This negative exchange rate effect should gradually reduce during the financial year, “assuming current rates are maintained until the end of the financial year”, indicated the group.
“Our activity in the first quarter came out in line with our expectations,” commented Sodexo CFO Marc Rolland during a conference call with journalists.
Internally, revenues increased by 8.2%. Internal growth in the first quarter was driven by catering services, whose activity increased by 10%, while growth in facilities management services (reception, upkeep, maintenance, etc.) was established. at 4.7%.
Internal growth was driven by the Rugby World Cup but suffered from “accounting changes on certain Energy & Resources projects in the Rest of the World, these two effects offsetting each other”, indicated Sodexo.
Marc Rolland specified that the Rugby World Cup had generated a turnover of around 30 million euros and that the Olympic and Paralympic Games planned for next summer in Paris should generate a turnover of around 60 million euros for the 2023-2024 financial year.
Inflation is gradually running out of steam
The family group specified that the increase in its prices linked to inflation was gradually slowing down, representing around 4.5% over the quarter.
In this context, Sodexo estimates that the increase in average prices during the financial year will be between 3% and 4%, compared to more than 5% during the previous financial year, in line with the evolution of inflation. food, detailed ad Marc Rolland.
By geographic region, turnover in North America reached 3 billion euros in the past quarter, representing organic growth of 8.7%, supported by “the contribution of new contracts combined with an increase in volumes, as well as only by the effect of price increases of around 4%”, specified Sodexo.
In Europe, turnover for the first quarter amounted to 2.2 billion euros, representing internal growth of 9.2%, or 7.6% excluding the impact of the Rugby World Cup, “favored by the increase in volumes in Business & Administration and a positive price effect of more than 5%,” added the group.
The turnover of the Rest of the World zone stood at 1.1 billion euros in the first quarter, representing internal growth of 4.7%, affected by “the accounting change in the recognition of the turnover figure”. business in Energy & Resources”. Excluding this effect, organic growth would have been 8.1%, with price increases representing almost 5%, Sodexo said.
“Growth in the first quarter remained strong in all geographies. It is explained by price increases, the ramp-up of new contracts and continued growth in volumes, particularly in Business Services, Sports & Leisure and Education”, commented Sophie Bellon, President and CEO of Sodexo.
“The Pluxee spin-off (split) project is progressing well, the next step being the Capital Markets Day on January 10, ahead of the first listing expected on February 1, 2024,” added the manager.
-Pierre-Jean Lepagnot, Agefi-Dow Jones +33 (0)1 41 27 47 95; pjlepagnot@agefi.fr ed: LBO
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January 05, 2024 02:53 PM ET (07:53 GMT)
2024-01-05 08:33:11
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