The French foodservice and facilities management firm has reported a sustained recovery across its corporate services, sports & leisure and university segments and expects group revenues to return to pre-pandemic levels in 2023
Sodexo expects organic revenue growth to reach the lower-end of its previous forecast range of 15-18% for 2022 | Photo credit: via Shutterstock
French catering and food services group Sodexo has reported a strong third quarter, achieving revenues of €5.52bn ($5.79bn) for the period to 31 May 2022, up from €4.48bn ($468bn) in the year previous.
Sodexo reports revenue for the first nine months of the 2022 financial year increased 17.3% to reach €15.8bn ($16.5bn).
The foodervice group, which said that third quarter results were ‘better-than-expected’, has seen activities return to 97% of pre-Covid levels as events and retail sites resumed trading and workers returned to offices.
Sodexo’s key on-site services division, which provides food and beverage catering services across a range of sectors, reported revenues rising 18.3% year-on-year to €5.3bn ($5.5bn) during its third quarter.
The international food catering services group expects organic revenue growth to reach the lower-end of its previous forecast range of 15-18% for its 2022 financial year to 31 August 2022.
“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. Benefits & Rewards Services is accelerating in all regions,” said Sophie Bellon, CEO, Sodexo.
Sodexo has also announced the reorganisation of its main on-site services business from September 2022 by transferring full profit and loss accountability for its North America, Europe and Rest of the World global divisions.
All three regions recorded increased revenues in the third quarter of 2022, with North American growth reported as rising 22.6%, Europe 18% and the Rest of the World, comprising Asia-Pacific, Latin America, the Middle East and Africa, at 9.8%.
Bellon, who was appointed Sodexo CEO and Chairwoman in February 2022, said that the ‘simplification’ of the reorganisation will bring ‘agility and speed to execution’.
In 2021, Issy-les-Moulineaux-based 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. The company operates across 56 countries, providing integrated food, facilities management and organisational services to clients in the corporate, education, healthcare, senior living, leisure, and government sectors.