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Solid first half performance for Sodexo

Sodexo’s results for first half Fiscal 2024 show consolidated revenues were at 12.1 billion euros, up +4.5% year-on-year.

Group organic revenue growth was +8.5%, with the most significant drivers continuing to be increased attendance, new business and pricing. Food services organic growth continued to outperform FM services at +10.7% and +4.5% respectively.

Broken down by region, North America achieved organic growth of +10.0%; Europe was up +8.0%, boosted 80bps by the Rugby World Cup, in the first quarter and; Rest of the World was up +5.7%, impacted by an accounting change for project works in a large contract. Excluding this, organic growth of the zone was +8.4%.

Underlying operating profit was 612 million euros, up +12.3%, or +16.9% at constant currencies. The Underlying operating margin was up +40 bps at 5.1%.

Operating profit was up +26.1%, or +30.1% at constant currencies, at 642 million euros compared to 509 million euros in the previous year.

Net new development has shown a steady improvement, reaching 2.4% on a last 12 months basis (LTM) as of the end of February, LTM client retention reached a new record of 95.5% and LTM development was 6.8%, which was slightly short of the 7-8% expected range for the year due to phasing.

Sodexo Chairwoman and CEO Sophie Bellon said: “The spin-off of Pluxee has been successfully completed. Sodexo is now a pure-player in food and facilities management services!

“We are making progress in transforming our food services, developing our branded offers, boosting our convenience activity and enhancing our purchasing, particularly in North America. Our organisation has been considerably simplified and streamlined: we are gaining in agility.

“The first half performance is solid. Organic growth is robust and the margin is up +40bps. Net new business momentum is also solid with a further improvement in retention.

“We are progressing towards our ambition to be the world leader in sustainable food and valued experiences.”


In Europe, first half Fiscal 2024 revenues amounted to 4.3 billion euros, up +8.0% organically, or +7.2% excluding the Rugby World Cup, driven by increased food services volume and pricing of around +5%.

Business & Administrations (excl. Sodexo Live!) restated organic growth was +6.3%. This was supported by Corporate services benefiting from both price increases and higher attendance, coupled with new business in Government in the UK.

Sodexo Live! restated organic growth stood at +25.4%, or +12.5% excluding the Rugby World Cup. The growth was primarily driven by improved attendance and pricing in sports and cultural destinations in France, in particular the restaurants in the Eiffel Tower, by increased volumes in the UK in airport lounges, as activity was only just starting to pick-up in early Fiscal 2023 post-pandemic, and stadiums, helped by price increases.

Healthcare & Seniors restated organic growth stood at +7.8%, driven by new business particularly in Spain and inflation pass-through in the UK, as well as favourable volumes and price revisions in Seniors in France.

Education restated organic revenue growth was +7.3%, reflecting the significant positive impact of price revisions, and a favourable working days impact.

Commenting on the Group’s success over the past six months in the UK and Ireland, Sean Haley, CEO Sodexo UK & Ireland said: “In the first half of our financial year, Sodexo’s growth – and more specifically, our growth with purpose – has been very positive.  Every contract retained or won has been – in part at least – in recognition of the quantified and tangible positive social impact we deliver as a company, in partnership with our clients and suppliers.

“We are optimising the workplace and employee experience at a time of significant change. Our extended global contract with AstraZeneca is a truly great example of a working partnership through a highly collaborative Vested® agreement, offering consumers access to global food brands, carbon labelling on menus and a digitised grab and go food offer.

“We are also now delivering foodservices to the ground-breaking higher education institution, University Academy 92 (UA92), which chose to partner with Sodexo as a purpose-led provider that could support UA92’s founding principles of accessibility, social mobility and inclusivity.

“Our colleagues in Ireland have successfully retained a number of contracts in the education sector, and this, alongside the growth of our corporate services business, reinforces our position as a world leader in sustainable food and valued experiences. 

“Our partnerships with many public sector organisations have also continued. We have been awarded a new 10-year contract with Royal Stoke Hospital, where last year we were the first to install an innovative automated 24/7 deli solution, providing hospital staff and visitors with access to nutritious and tasty hot food and drink on demand.

“We are ambitious and optimistic for the future. We look forward to further accelerating our growth as a partner chosen not just for our service excellence and continued innovation, but importantly as a responsible, purpose-led provider that is taking bold and tangible actions to improve the lives of colleagues, clients and consumers in the communities where we work and serve. 

“Our results speak for themselves: earlier this year we announced in the 12 months up to 31 May 2023 we have reduced our carbon emissions by 37%. This has put us ahead of schedule in our journey to net zero 2040. More recently, we announced our intention to add carbon labelling to menus at 300 of our client sites where we provide food services, part of our work towards ensuring 70% of main dishes on our menus are low carbon by 2030 – a key lever in our SBTi-validated net zero targets.

“Being clear on how we make a positive social impact is the driving force behind everything we do – from creating job opportunities for ex-offenders and cutting food waste. At our recent annual Stop Hunger Foundation dinner we raised a record-breaking £286,000 which will go directly towards supporting disadvantaged communities and addressing the root causes of food insecurity. 

“We continue to challenge ourselves to do more – whether that be on one of our 2,000 sites or in our communities across the region.  We recognise that our success is down to our colleagues who deliver service excellence for our clients across the UK and Ireland, whether in the public or private sector, as part of an operational or functional team.

“Every day, our colleagues make a difference and we thank them for that, every year we can feel proud of the impact we are having.”

Group Outlook

Given the solid commercial momentum, some ongoing volume growth, the contribution of the Paris Olympics and Paralympics Games in the fourth quarter, and pricing expected at close to +4% for the full year, Fiscal 2024 guidance is:

  • Organic revenue growth now expected at the top of the +6% to +8% range.
  • Underlying operating profit margin improvement confirmed at +30 to +40 bps, at constant currencies.
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