Sodexo SA
PAR:SW

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Sodexo SA Logo
Sodexo SA
PAR:SW
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Price: 42.7 EUR -1.61% Market Closed
Market Cap: 6.3B EUR

Sodexo SA
Investor Relations

Sodexo SA, founded in 1966 by Pierre Bellon in Marseille, France, embarked on its journey with the simple yet powerful idea of improving quality of life through a unique offering in food services. Initially, Sodexo focused on catering for institutions such as schools and hospitals, embedding itself in the daily lives of the community. Over the decades, the company expanded its scope significantly, becoming one of the world's largest multinational corporations specializing in integrated service solutions. With operations in over 80 countries, Sodexo combines its historical prowess in food services with facility management, offering a comprehensive suite of services ranging from cleaning and reception to maintenance and security. This diversification reflects its strategic adaptability, positioning itself to cater to the evolving needs of businesses and institutions in diverse sectors, including corporate, healthcare, education, and remote sites.

The company's revenue model is anchored in long-term contracts with its clients where it delivers bundled services that are designed to enhance both productivity and comfort. By assuring operational excellence and embracing technological innovations in service delivery, Sodexo not only meets but often anticipates its clients' needs. Its business is supported by a strong commitment to sustainability, acknowledging the importance of reducing its carbon footprint while promoting social responsibility. Leveraging economies of scale, Sodexo optimizes its supply chain, ensuring cost-effectiveness which bolsters its profitability. Such a strategic approach not only reinforces client loyalty but also positions Sodexo as a critical player in the service industry focused on improving the holistic human experience through meticulous care and operational efficacy.

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Last Earnings Call
Fiscal Period
Q2 2023
Call Date
Apr 5, 2023
AI Summary
Q2 2023

Strong Growth: Sodexo reported first half organic revenue growth of 13.4%, driven by a strong recovery in food services and events post-COVID.

Margin Improvement: Underlying operating margin increased 60 basis points to 5.8%, in line with guidance.

BRS Spin-Off: The company announced plans to spin off its Benefits & Rewards Services (BRS) business, creating two separate pure-play companies during 2024.

Upgraded Outlook: Full-year organic revenue growth guidance was raised to close to 11%, while margin target of around 5.5% was reiterated.

Contract Wins: Sodexo highlighted significant contract wins in North America and Europe, and record new development for the first half.

Cost Discipline: Management cited strong cost control and successful inflation pass-through, but expects some margin pressure in the second half due to continued high food inflation in Europe.

Key Financials
Revenue
€12.1 billion
Organic Revenue Growth
13.4%
Underlying Operating Margin
5.8%
On-site Services Organic Growth
12.9%
On-site Services Margin
5.1%
Benefits & Rewards Organic Growth
24.2%
Benefits & Rewards Margin
31.9%
Net Profit
€440 million
Underlying Net Profit
€475 million
Retention Rate
97.8%
New Development Rate
3.6%
Gross CapEx
€317 million
Net Debt-to-EBITDA Ratio
1.3
Earnings Call Recording
Other Earnings Calls
2023
2022
2020
2019
2018

Management

Ms. Nathalie Bellon-Szabo
CEO Sodexo Live! & Worldwide and Director
No Bio Available
Mr. Philippe Besson
Head of Projects for Sponsorship & Director
No Bio Available
Mr. Sebastien De Tramasure
Group Chief Financial Officer
No Bio Available
Ms. Virginia Jeanson
Head of Investor Relations
No Bio Available
Mr. Angelo Piccirillo
Group General Counsel
No Bio Available
Ms. Annick de Vanssay
Group Chief Human Resources Officer
No Bio Available
Mr. Aurelien Sonet
Chief Executive Officer of Pluxee
No Bio Available
Mr. Marc Plumart
Chief Growth & Commercial Officer
No Bio Available
Ms. Anna Notarianni
Group Chief Impact Officer
No Bio Available
Mr. Johnpaul Dimech
President of APMEA, Brazil & Latin America
No Bio Available

Contacts

Address
ILE-DE-FRANCE
Issy-les-Moulineaux
255 quai de la Bataille de Stalingrad
Contacts
+33130857500.0
www.sodexo.com