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Sodexo reports solid pick-up in activity and better than expected performance

Sodexo’s Full Year Group Results for FY21 show organic growth has been better than expected in both halves. By the fourth quarter, the Group reached 87 per cent of Fiscal 2019 activity, with Healthcare, Schools and Benefits & Rewards Services already back up at pre-covid levels. On-site Services revenues for the Group declined by -6.0 per cent overall for the year, following the deepest downturn ever registered by the Group due to the pandemic. In the second half Fiscal 2020, however, activity picked up progressively quarter by quarter, reaching 87 per cent of pre-Covid Fiscal 2019 revenues at constant rates, by the fourth quarter.

Sodexo Chairwoman and Interim CEO Sophie Bellon said:

“Our cashflow has been very positive with a debt ratio, at 1.7, and liquidity stronger than ever at 6.4 billion euro. The recovery is continuing into Fiscal 2022, with ongoing growth and margin improvement.

“Our teams are focused on client retention, consumer satisfaction, growth opportunities, operational excellence, and employee engagement. We are also accelerating our transformation to meet the new demands of consumers for digitized, convenient, varied and healthy food, with holistic offers, adapted to more hybrid environments.

“We are also actively managing our portfolio of services and activities to enhance the Group’s performance. We thank all our 412,000 employees for their impressive engagement to our clients and consumers. We also thank our shareholders for their support in this crisis and propose to resume our dividend policy this year.”

Sodexo UK & Ireland has had a strong year and some significant successes despite trading still being below pre-pandemic levels.

Said Sean Haley, Chairman, Sodexo UK and Ireland:

“We have seen a steady flow of contract wins, particularly in areas hit hardest by lockdown, such as schools and our sports and leisure business, Sodexo Live! We won prestigious new business with Oundle School and extended our contract in the newly refurbished Hampden Park, the home of Scottish football.  We were genuinely delighted this summer to help the government with test events and opening back up the experiences that we know people love – Royal Ascot, Henley Royal Regatta and the Chelsea Flower Show.”

“We were also proud to continue supporting the Government’s ongoing response to Covid-19 and are now the largest provider of test centres in the UK and operate the only network of assisted testers in England and Scotland, providing tests for those who have mobility and disability issues, and at events such as the G7 and the forthcoming COP26.

“Our financial results are one indicator of our businesses’ health, but our social impact is just as significant. And we’ve made great progress on our social impact pledges.”

“What stands out for me is how we have reduced food waste significantly using WasteWatch powered by Leanpath. This programme is now at 229 client sites and has prevented over 280 tonnes of food waste – more than 500,000 meals. Sodexo UK & Ireland has also set an ambitious and comprehensive roadmap to net zero by 2045.  We’ve committed to being carbon neutral in our direct operations by 2025 and to reduce carbon emissions by 55% by 2030 across all three scopes, which has been validated by the Science Based Target initiative (SBTi).”

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