Updated January 5th, 2024 at 13:46 IST
Food caterer Sodexo's quarterly sales rise as corporate demand picks up
The company's quarterly sales came in at 6.29 billion euros ($6.88 billion), up 3.1 per cent from a year earlier.
Sodexo sales rise: French food caterer Sodexo on Friday reported 3 per cent growth in its first-quarter sales, in line with its forecasts and helped by a rise in corporate events and more workers returning to the office.
The company's quarterly sales came in at 6.29 billion euros ($6.88 billion), up 3.1 per cent from a year earlier. A consensus provided by the company had expected sales of 6.28 billion euros.
Sales grew in all geographies "due to pricing, new contract ramp-ups and continued volume growth, particularly in the Corporate services, Sports & Leisure and Education," Chief Executive Officer Sophie Bellon said in a statement.
The revenue figures exclude Pluxee, Sodexo's vouchers' unit which the group plans to spin off and do a separate listing in February. Bellon said plans for Pluxee's spin-off and listing are on track.
Employers have turned to Sodexo's vouchers such as meal and fuel cards to help workers cope with the cost-of-living crisis, while staff returning to offices and higher pricing have also boosted its catering business.
JPMorgan analysts in a note called the earnings report a "sound start to the year," and said this "bodes positively for the sector overall," including for British peer Compass Group .
Sodexo is still raising prices for its services to cushion the effect of inflation, but at a slower pace than last year, finance chief Marc Rolland said in a call with journalists.
Sodexo confirmed its outlook for 2024 and 2025.
Published January 5th, 2024 at 13:46 IST