French foodservice and facilities management firm says the return to workplaces and classrooms is driving its strong recovery from the pandemic as first quarter revenues rise 18.8% year-on-year
Sodexo signed a five-year corporate services partnership with New York's For Five Coffee Roasters in 2021 | Photo credit: Sodexo
Sodexo has kicked off 2022 in a strong position after posting robust first quarter results. The international foodservice and facilities management provider said first quarter revenues rose 18.8% year-on-year to reach €5.3bn ($6bn), with business activity back up to 95% of pre-Covid levels.
Sodexo’s key on-site services division, which provides food and beverage catering services across a range of sectors, achieved revenues of €5.1bn during its first quarter – 19.2% higher than in the year previous.
The Issy-les-Moulineaux-headquartered company added that corporate services, sports & leisure and university activity levels increased ‘very substantially’ during the quarter, adding that the return of students and staff to classrooms and workplaces and the reopening of stadiums and convention centres had contributed to its ongoing recovery.
Sodexo said the recovery of its North American on-site services business had ‘accelerated significantly’ in the first quarter, achieving organic revenue growth of 28.2%. However, the return to workplaces in the US and Canada was progressing more slowly than other markets around the world, with the region performing at 85% of pre-Covid level activity.
In Europe, continued progress of the return to workplaces and the reopening of sports stadiums delivered 11.2% revenue growth, with activity levels ‘more or less’ back up to pre-Covid levels.
Meanwhile, strong recoveries in India and ‘solid growth’ in China and Brazil enabled Sodexo’s Asia-Pacific, Latin America, Middle East and Africa business to achieve 11.5% organic revenues growth.
“The recovery in the first quarter has been strong. The Group reached 95% of pre-Covid levels this quarter with Benefits & Rewards services, Healthcare & Seniors, Schools and Facility Management services now well above pre-Covid levels and strong improvements in Sports & Leisure, Universities and Corporate Services. Recovery is accelerating in Food Services. All geographies are contributing to this growth and particularly North America,” said Sophie Bellon, Chairwoman of the Board and Interim CEO.
“We have signed new contracts with innovative offers to help our clients attract consumers back on site through more convenient and flexible services,” Bellon added.
In 2021, Sodexo signed partnership deals with US coffee chain For Five Coffee
and UK-based specialty coffee roaster, Origin Coffee
, to supply coffee to its corporate services clients.
Founded in Marseille, France, in 1966, Sodexo maintains a presence across 56 countries, providing integrated food, facilities management and organisational services to clients in the corporate, education, healthcare, senior living, leisure, and government sectors. In October 2021, the company reported full-year revenues of €17.4bn ($20.2bn) – 87% of 2019 levels.