The French foodservice and facilities management firm says its on-site services division has surpassed pre-pandemic levels as a result of the widespread return to workplaces across North America and Europe
Sodexo’s full-year outlook anticipates organic revenue growth reaching 10% | Photo credit: via Shutterstock
Paris-based Sodexo has credited resumed workplace attendance across North America and Europe for its 20% year-on-year revenue growth.
For the three months ended 30 November 2022, the French catering and food services group achieved revenues of €6.3bn ($6.6bn).
Sales growth was highest in North America and Sodexo’s Rest of the World division, at 15.7% and 15.3% respectively. The former region benefited from the widespread post-pandemic return to the workplace, as well as enhanced retail and event catering activity on US university campuses.
The positive performance of the Rest of the World division, encompassing Asia-Pacific, Latin America, the Middle East and Africa, was achieved despite sporadic lockdowns in China hindering travel and forcing employees to work-from-home.
Revenue growth in Europe reached 6% following a strong workplace return and the resumption of corporate events and tourist activity, particularly in Paris.
Sodexo's Benefits & Rewards division, which provides vouchers to businesses for their employees, increased 23% in the quarter.
“As expected, we have had a strong start to the year. On-site services continued to benefit from the post-Covid ramp-up, with a higher level of attendance, in all geographies, in the workplace, in stadiums, in convention centres and in universities. Price increases also boosted revenue growth. As a result, on-site services activity is back up over first quarter fiscal 2019 levels,” said Sophie Bellon, CEO, Sodexo.
Sodexo’s full-year outlook anticipates organic revenue growth reaching 10%, driven by the further recovery of its corporate services and leisure divisions.
However, expecting inflationary pricing of 4-5%, Sodexo is set to continue price increases and inflation mitigation action plans throughout the next nine months.
The company achieved 21% sales growth in 2022, reaching revenues of €21.1bn ($22.1bn) in the 12 months ended 31 August 2022.