- On-site Services revenue growth as expected
- Ongoing acceleration in Pluxee (Benefits & Rewards Services)
- Full year guidance refined
Q3 FISCAL 2023 REVENUES
REVENUES (in million euros) | Q3 FY23 | Q3 FY22 | ORGANIC GROWTH | EXTERNAL GROWTH | CURRENCY EFFECT | TOTAL GROWTH | |
2,658 | 2,366 | +12.1 % | — % | +0.2 % | +12.4 % | ||
2,042 | 1,993 | +4.4 % | -0.2 % | -1.8 % | +2.5 % | ||
Rest of the World | 1,055 | 943 | +16.3 % | -1.1 % | -3.3 % | +11.8 % | |
5,755 | 5,302 | +9.9 % | -0.3 % | -1.1 % | +8.5 % | ||
BENEFITS & REWARDS SERVICES | 273 | 222 | +25.5 % | — % | -2.3 % | +23.2 % | |
Elimination | (2) | (1) | |||||
TOTAL GROUP | 6,026 | 5,523 | +10.5 % | -0.2 % | -1.2 % | +9.1 % |
Commenting on the third quarter activity,
"Our third quarter On-site activity continued to grow strongly, despite the much higher comparative base. We continue to have momentum in contract wins and retention. There was some further post-Covid ramping up in the return to the workplace and in event attendance and average spend.
Pluxee third quarter growth is stronger than expected with growing underlying demand, amplified by strong face value increases and higher interest rates. The workstreams associated with the spin-off are on track. We endorsed the appointment of
We are progressing towards our 2025 ambition to become leader in sustainable food and valued experiences. I want to thank all the teams for their dynamic mobilization around our strategic projects."
Highlights of the period
- Third quarter Fiscal 2023 consolidated revenues reached
6.0 billion euros , up +9.1% year-on-year including a negative currency impact of -1.2% and a net contribution from acquisitions and disposals of -0.2%. As a result, third quarter Fiscal 2023 organic growth was +10.5%. Revenue for the first nine months of Fiscal 2023, to the end of May, reached 18.1 billion euros, up +14.7%, or +12.4% organically. - Third quarter Fiscal 2023 On-site Services revenue organic growth was up +9.9%, benefiting from an accelerated net new in-year revenue of close to 2%, a pricing effect of above 5% and like-for-like volume growth (including cross-selling) of close to 4%, partially offset by a negative impact from the end of the Testing Centers contract in the
UK of -0.9%.- Organic growth in the quarter was driven by Food services, up +13.8% organically, whereas FM services were up +3.6%, or +6.0% excluding the impact of the end of the Testing Centers.
- Net new development momentum remained strong with improvements in both retention and development year to date.
- Pluxee (Benefits & Rewards Services) organic growth was +25.5%. Operating revenues organic growth at +16.7% continued to accelerate in the third quarter, fueled by positive net development and face value increases. The trajectory on financial revenues remained very strong, benefiting from the continuous increase in euro interest rates.
Sodexo continues to progress on its sustainability commitments:- Rolling 12-month Lost Time Injury Rate (LTIR) at the end of the third quarter Fiscal 2023, decreased by -32% (from 0.62 to 0.47) and Severity of Lost time injuries by -70%. We have also experienced higher levels of employee engagement towards safety through a campaign focusing on near misses demonstrating a step change in our safety culture maturity.
- As part of its commitment to preserve natural resources, and in particular its strong position on sustainable fishing,
Sodexo participated in the creation of an innovative fund together with theWorld Wildlife Fund (WWF) and Finance Earth (FE). This fund aims to reverse the decline of fisheries and scale nature-positive improvements in fisheries around the world. At the end of Fiscal 2022, 85.3 % of fish and seafood purchased bySodexo were sustainable, on track to reach the 100% target for 2025.
Update on the plan to spin-off and list Pluxee (Benefits & Rewards Services)
- The Benefits & Rewards Services activities now have a new name. Pluxee is the new commercial brand name as well as the name of the future listed company.
- The future appointment of
Didier Michaud-Daniel as Chairman of the Pluxee Board of Directors has been endorsed by the Sodexo Board of Directors.Didier Michaud-Daniel will bring to the Board of Directors of Pluxee his significant background as CEO of large, listed companies in international BtoB environments and his experience of the financial markets.Didier Michaud-Daniel has a proven track record in driving significant business growth and transformations as well as extensive leadership experience. He will play an active role alongsideAurélien Sonet , who has been confirmed as CEO of Pluxee, andStéphane Lhopiteau who is joining Pluxee as CFO. For now,Didier Michaud-Daniel is working on the constitution of the futureBoard of Pluxee and supporting the Leadership team as they prepare for the spin-off. - Commenting his nomination,
Didier Michaud-Daniel said: “I am very pleased to be part of the Pluxee journey and I feel honored by the trust placed in me by the Bellon family and the Sodexo Board of Directors. The times ahead are very exciting for this future pure player in a growth market with high potential. The teams I have started to meet with are profoundly engaged, extremely dynamic and deeply committed to Pluxee’s strong values. I am confident that the strategic course we are executing upon is the right one and that it will help us accelerate and deliver strong growth and profitability in the years to come.“
Outlook
Our Fiscal 2023 guidance has been refined to reflect the strong Pluxee performance and solid in-line performance of On-site Services in the third quarter:
- Pluxee organic revenue growth above +20% and Underlying Operating Profit margin above 32%, at constant rates.
- Group organic revenue growth close to +11% and Group Underlying Operating Profit margin at 5.5%, at constant rates.
*********************************
Conference call
Those who wish to connect:
- From the
UK : +44 121 281 8004, or - From
France : +33 1 70 91 87 04, or - From the US: +1 718 705 8796,
Following by the access code 07 26 13.
The live audio webcast will be available on www.sodexo.com
The press release, presentation and webcast will be available on the Group website www.sodexo.com in both the “Latest News” section and the “Finance – Financial Results” section.
Financial calendar
Fiscal 2023 Annual Results | |
Fiscal 2023 Shareholders' Meeting | |
Fiscal 2024 First quarter Revenues |
These dates are indicative and may be subject to change without notice.
Regular updates are available in the calendar on our website www.sodexo.com
About
Founded in
Key figures
|
|
Contacts | ||||
Analysts and Investors | Media | |||
+33 1 57 75 80 56 virginia.jeanson@sodexo.com | Mathieu Scaravetti +33 6 28 62 21 91 mathieu.scaravetti@sodexo.com | |||
Appendix - Biographies
Future Chairman of the Pluxee Board of Directors
From
Since 2019,
Chief Financial Officer, Pluxee
He is a graduate of
Q3 Fiscal 2023 Activity Report
Revenues: Solid Organic Revenue growth
REVENUES BY REGION |
REVENUES (in million euros) | Q3 FY23 | Q3 FY22 | ORGANIC GROWTH | EXTERNAL GROWTH | CURRENCY EFFECT | TOTAL GROWTH | |
2,658 | 2,366 | +12.1 % | — % | +0.2 % | +12.4 % | ||
2,042 | 1,993 | +4.4 % | -0.2 % | -1.8 % | +2.5 % | ||
Rest of the World | 1,055 | 943 | +16.3 % | -1.1 % | -3.3 % | +11.8 % | |
5,755 | 5,302 | +9.9 % | -0.3 % | -1.1 % | +8.5 % | ||
BENEFITS & REWARDS SERVICES | 273 | 222 | +25.5 % | — % | -2.3 % | +23.2 % | |
Elimination | (2) | (1) | |||||
TOTAL GROUP | 6,026 | 5,523 | +10.5 % | -0.2 % | -1.2 % | +9.1 % |
Third quarter Fiscal 2023 consolidated revenues reached
Third quarter Fiscal 2023 On-site Services revenue organic growth was up +9.9%, benefiting from an accelerated net new business contribution of close to 2%; a pricing effect of above 5% and like-for-like volume growth (including cross-selling) of close to 4%, partially offset by a negative impact from the end of the Testing Centers contract in the
Organic growth in the quarter was driven by Food services, up +13.8% organically, whereas FM services were up +3.6%, or +6.0% excluding the impact of the end of the Testing Centers. Food services now represent 65% of year-to-date total On-Site revenues, increasing from 60% in Fiscal 2022.
The net new development momentum remained positive with improvements in both retention and development year to date.
REVENUES BY SEGMENT (in million euros) | Q3 FY23 | Q3 FY22 | ORGANIC GROWTH |
Business & Administrations | 959 | 795 | +20.1 % |
Healthcare & Seniors | 855 | 783 | +9.0 % |
Education | 844 | 788 | +7.2 % |
2,658 | 2,366 | +12.1 % |
Third quarter Fiscal 2023
Organic growth in Business & Administration was +20.1%, boosted by new contracts in Corporate Services, increased activity in Sports events and Cultural destinations combined with a +28% higher passenger count in Airline Lounges, inflation pass-through, and to a lesser extent the very strong growth of Entegra (Sodexo GPO).
In Healthcare & Seniors, organic growth was +9.0%, driven by pricing and retail volume improvement. The net new development contribution was slightly positive.
In Education, organic revenue growth was +7.2%. Like-for-like growth in food services in Universities was very strong, with volume and price increases due to a higher level of board plans, retail sales and event catering. In Schools, growth stalled at +0.5%, the impact of price adjustments being offset by decreases in volume related to the reduction of government waiver eligibility for students.
REVENUES BY SEGMENT (in million euros) | Q3 FY23 | Q3 FY22 | ORGANIC GROWTH |
Business & Administrations | 1,324 | 1,251 | +7.5 % |
Healthcare & Seniors | 531 | 545 | -0.8 % |
Education | 187 | 197 | -1.1 % |
2,042 | 1,993 | +4.4 % |
In
In Business & Administrations, organic growth was +7.5%, boosted by strong price revisions in food, continued improvement in the return to the office, particularly in
In Healthcare & Seniors, organic growth of -0.8% was impacted by the end of the Testing Centers in the
Education organic revenue growth was -1.1%, reflecting the reduction of working days in the
Rest of the World
REVENUES BY SEGMENT (in million euros) | Q3 FY23 | Q3 FY22 | ORGANIC GROWTH |
Business & Administrations | 946 | 841 | +17.1 % |
Healthcare & Seniors | 83 | 83 | +1.3 % |
Education | 26 | 19 | +45.5 % |
REST OF THE WORLD TOTAL | 1,055 | 943 | +16.3 % |
Rest of the World third quarter Fiscal 2023 revenues were
Business & Administrations was up +17.1%, driven by the impact of the new openings in Corporate Services and Energy & Resources in
Healthcare & Seniors revenue was +1.3% organically, with strong development and project works in
Education organic growth was +45.5%, as Chinese schools reopen fully.
PLUXEE
Pluxee (Benefits & Rewards Services) organic growth was +25.5%. Operating Revenues organic growth at +16.7% continued to accelerate in the third quarter, fueled by solid net development and face value increases. The trajectory on Financial Revenues remained very strong, benefiting from the increase in euro rates.
REVENUES BY NATURE (in million euros) | Q3 FY23 | Q3 FY22 | ORGANIC GROWTH |
Operating Revenues | 235 | 205 | +16.7 % |
Financial Revenues | 38 | 17 | +130.9 % |
BENEFITS & REWARDS SERVICES | 273 | 222 | +25.5 % |
Employee benefits organic growth was +28.4%. This strong performance is the result of +17.8% organic growth in issue volume, which reached
REVENUES BY ACTIVITY (in million euros) | Q3 FY23 | Q3 FY22 | ORGANIC GROWTH |
Employee benefits | 229 | 183 | +28.4 % |
Services Diversification* | 44 | 39 | +11.9 % |
BENEFITS & REWARDS SERVICES | 273 | 222 | +25.5 % |
* Including Incentive & Recognition, Mobility & Expenses and Public Benefits.
In
In
REVENUES BY REGION (in million euros) | Q3 FY23 | Q3 FY22 | ORGANIC GROWTH |
165 | 138 | +24.0 % | |
108 | 84 | +28.1 % | |
BENEFITS & REWARDS SERVICES | 273 | 222 | +25.5 % |
FINANCIAL POSITION
Apart from the seasonal changes in working capital, there were no material changes in the Group's financial position as of
PRINCIPAL RISKS AND UNCERTAINTIES
There were no significant changes to the principal risks and uncertainties identified by the Group in the Risk Factors section of the Fiscal 2022 Universal Registration Document filed with the AMF on
ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS
Growth excluding currency effect
The currency effect is determined by applying the previous year’s average exchange rates to the current year figures except in hyper-inflationary economies where all figures are converted at the latest closing rate for both periods when the impact is significant.
Issue volume
Issue volume corresponds to the total face value of service vouchers, cards and digitally delivered services issued by Benefits & Rewards Services for beneficiaries on behalf of clients.
Lost Time Injury Rate (LTIR)
Lost Time Injury Rate (LTIR) corresponds to the number of accidents per 200,000 hours worked. 200,000 hours worked is equal to 100 full-time employees working for one full year. The LTIR includes safety incidents (injuries) and work-related health issues (illnesses) that lead to an employee being unable to work.
Organic growth
Organic growth corresponds to the increase in revenue for a given period (the “current period”) compared to the revenue reported for the same period of the prior fiscal year, calculated using the exchange rate for the prior fiscal year; and excluding the impact of business acquisitions (or gain of control) and divestments, as follows:
- for businesses acquired (or gain of control) during the current period, revenue generated since the acquisition date is excluded from the organic growth calculation;
- for businesses acquired (or gain of control) during the prior fiscal year, revenue generated during the current period up until the first anniversary date of the acquisition is excluded;
- for businesses divested (or loss of control) during the prior fiscal year, revenue generated in the comparative period of the prior fiscal year until the divestment date is excluded;
- for businesses divested (or loss of control) during the current fiscal year, revenue generated in the period commencing 12 months before the divestment date up to the end of the comparative period of the prior fiscal year is excluded.
Underlying operating profit margin
The Underlying operating profit margin corresponds to Underlying operating profit divided by revenues.
Underlying operating profit margin at constant rates
The Underlying operating profit margin at constant rates corresponds to Underlying operating profit divided by revenues, calculated by converting 2023 figures at Fiscal 2022 rates, except for countries with hyperinflationary economies.
REVENUE FOR THE FIRST 9 MONTHS FISCAL 2023
REVENUES (in million euros) | 9M FY23 | 9M FY22 | ORGANIC GROWTH | EXTERNAL GROWTH | CURRENCY EFFECT | TOTAL GROWTH | |
8,157 | 6,598 | +14.9 % | +0.8 % | +7.9 % | +23.6 % | ||
6,068 | 5,910 | +7.0 % | -2.6 % | -1.7 % | +2.7 % | ||
Rest of the World | 3,110 | 2,659 | +15.3 % | -1.7 % | +3.4 % | +17.0 % | |
17,335 | 15,167 | +11.9 % | -1.0 % | +3.4 % | +14.3 % | ||
BENEFITS & REWARDS SERVICES | 781 | 620 | +24.7 % | -0.6 % | +1.9 % | +25.9 % | |
Elimination | (5) | (2) | |||||
TOTAL GROUP | 18,111 | 15,784 | +12.4 % | -1.0 % | +3.3 % | +14.7 % |
REVENUES BY SEGMENT (in million euros) | 9M FY23 | 9M FY22 | ORGANIC GROWTH |
Business & Administrations | 9,585 | 8,046 | +17.6 % |
Healthcare & Seniors | 4,367 | 4,088 | +3.0 % |
Education | 3,383 | 3,033 | +8.7 % |
ON-SITE SERVICES TOTAL | 17,335 | 15,167 | +11.9 % |
REVENUES BY SEGMENT (in million euros) | 9M FY23 | 9M FY22 | ORGANIC GROWTH |
Business & Administrations | 2,842 | 2,058 | +27.1 % |
Healthcare & Seniors | 2,578 | 2,207 | +9.3 % |
Education | 2,737 | 2,333 | +9.5 % |
8,157 | 6,598 | +14.9 % |
REVENUES BY SEGMENT (in million euros) | 9M FY23 | 9M FY22 | ORGANIC GROWTH |
Business & Administrations | 3,957 | 3,605 | +13.5 % |
Healthcare & Seniors | 1,539 | 1,660 | -5.8 % |
Education | 572 | 645 | +3.4 % |
6,068 | 5,910 | +7.0 % |
REVENUES BY SEGMENT (in million euros) | 9M FY23 | 9M FY22 | ORGANIC GROWTH |
Business & Administrations | 2,786 | 2,383 | +15.6 % |
Healthcare & Seniors | 250 | 221 | +6.0 % |
Education | 74 | 55 | +35.7 % |
REST OF THE WORLD TOTAL | 3,110 | 2,659 | +15.3 % |
REVENUES BY NATURE (in million euros) | 9M FY23 | 9M FY22 | ORGANIC GROWTH |
Operating Revenues | 683 | 580 | +16.3 % |
Financial Revenues | 98 | 40 | +147.0 % |
BENEFITS & REWARDS SERVICES | 781 | 620 | +24.7 % |
REVENUES BY ACTIVITY (in million euros) | 9M FY23 | 9M FY22 | ORGANIC GROWTH |
Employee benefits | 647 | 507 | +25.7 % |
Services Diversification* | 134 | 113 | +19.9 % |
BENEFITS & REWARDS SERVICES | 781 | 620 | +24.7 % |
REVENUES BY REGION (in million euros) | 9M FY23 | 9M FY22 | ORGANIC GROWTH |
484 | 406 | +23.2 % | |
297 | 214 | +27.4 % | |
BENEFITS & REWARDS SERVICES | 781 | 620 | +24.7 % |
CURRENCY EFFECTS
Exchange rate fluctuations do not generate operational risks because each subsidiary bills its revenues and incurs its expenses in the same currency. However, given the weight of the Benefit & Rewards activity in
1€= | AVERAGE RATE 9M FY 2023 | AVERAGE RATE 9M FY 2022 | AVERAGE RATE 9M FY 2023 VS. 9M FY 2022 | CLOSING RATE FY 2023 AT | CLOSING RATE FY 2022 AT | CLOSING RATE VS. |
1.049 | 1.124 | +7.2 % | 1.068 | 1.000 | -6.4 % | |
Pound sterling | 0.875 | 0.845 | -3.4 % | 0.864 | 0.860 | -0.4 % |
Brazilian real | 5.443 | 5.939 | +9.1 % | 5.429 | 5.148 | -5.2 % |
The +3.3% currency impact for the first 9 months of Fiscal 2023 is linked to the increase in the
The currency effect is determined by applying the previous year’s average exchange rates to the current year figures except in hyper-inflationary economies where all figures are converted at the latest closing rate for both periods when the impact is significant.
Attachment
- PR
Sodexo Q3 Fiscal 2023 Revenues ENG
Source:
2023 GlobeNewswire, Inc., source