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Sodexo: 1st quarter 2020-2021 revenue in line with forecasts, 1st half operating margin assumption revised upwards


Sodexo: 1st quarter

iCrowdNewswire   Jan 11, 2021  1:09 PM ET

Issy-les-Moulineaux, January 8, 2021 – Sodexo .

Revenue for the 1 st quarter of fiscal year 2020-2021

REVENUES BY SEGMENT
(In millions of euros)
Q1
2020-2021
Q1
2019-2020
  INTERNAL GROWTH EXTERNAL GROWTH EXCHANGE EFFECT TOTAL VARIATION
Companies & Administrations 2 185 3 195   – 27.7% + 0.4% – 4.3% – 31.6%
Health & Seniors 1,161 1,274   – 3.5% – 0.1% – 5.3% – 8.9%
Education 918 1,403   – 31.2% – 0.1% – 3.3% – 34.6%
On-Site Services 4 264 5 872   – 23.3% + 0.2% – 4.3% – 27.4%
Benefits & Rewards Services 169 205   – 5.6% + 0.6% – 12.8% – 17.8%
Elimination – 1 – 1          
GROUP TOTAL 4,432 6,076   – 22.7% + 0.2% – 4.5% – 27.1%

Commenting on these figures, Denis Machuel, CEO of Sodexo, declared:

“The trend of improving sales continues this quarter, despite the arrival of the second wave in November in most of our regions. All regions are recording better results, although North American activities remain severely affected by the Covid-19 pandemic, particularly in Education, Business Services and Sports & Leisure.

The teams took particular care to adapt the cost structures and contractual conditions to ensure profitability during reopening. The restructuring program is in progress.

Therefore, and although the turnover is in line with forecasts, this first quarter is better than expected in terms of operational performance, and therefore, despite the uncertainty surrounding the evolution of the Covid-19 pandemic, our The operating margin target for the first half of the 2020-2021 fiscal year is now raised to at least 2.5%. “

Highlights of the period

Outlook

Over the next quarter, given the high level of uncertainty that we are currently experiencing, the effects of the pandemic, and in particular the possibility of additional confinements, will continue to be significant for the Group.

The Government Services and Energy & Resources segments will continue to be resilient. The Healthcare & Seniors segment will gradually return to pre-Covid levels. Business Services and Education will gradually improve, as lockdowns ease and vaccination gains traction. The Sports & Leisure segment is not expected to improve significantly before the end of the pandemic.

For Benefits & Rewards Services, the issuance volumes of Employee Benefits returned to growth, with digitalization and market penetration continuing to progress, reinforced by the development of teleworking. Redemption volumes are still affected by restaurant closings, but they will catch up with issue volumes as they reopen. Sales continue to be affected by extremely low interest rates, particularly in Brazil, which have now stabilized.

At this stage, in view of the performance of the 1 st quarter, we maintain our forecasts of negative organic growth of between – 20% and – 25% for the first half of the 2020-2021 fiscal year, an improvement compared to the second half. for the 2019-2020 fiscal year.

Until activity returns to a more normal level, the Group continues to use all available partial activity programs. Strong restructuring measures continue to protect future margins as government support programs begin to decline. Strict measures are in place in all segments and activities to reduce general and administrative costs.

In the 1 st quarter of the 2020-2021 fiscal year, performance exceeded expectations in terms of cost control and contract negotiation. So, despite the uncertainty surrounding the evolution of the pandemic, our operating margin target to 1 st half 2020 to 2021 is now less than 2.5%, beyond our initial assumptions to 2 2 , 5%.

In the longer term, by estimating that the health crisis will end by the end of the 2021 calendar year, the Group aims to return to a level of sustained growth and a rapid recovery of the operating margin beyond the level pre-crisis margin.

Conference call

Sodexo will hold a conference call (in English) today at 9:00 a.m. (French time), 8:00 a.m. (UK time) , to comment on the revenue for the 1 st quarter of fiscal year 2020-2021.
To log in,

The press release, the presentation and the deferred webcast of the conference will be available on the Group’s website www.sodexo.com under the sections “Latest news” and “Finance – Financial results”.

Financial calendar

General Assembly for the 2019-2020 financial year January 12, 2021
Results for the first half of 2020-2021 The 1 st April 2021
Revenues for the first nine months of 2020-2021 On 1 st July 2021
2020-2021 annual results October 28, 2021
General Assembly for the 2020-2021 fiscal year December 14, 2021

These dates are purely indicative and may be changed without notice. Regular updates are available in the calendar on our website  www.sodexo.com

About Sodexo

Created in 1966 in Marseille by Pierre Bellon, Sodexo is the world leader in services to improve Quality of Life, an essential factor in the performance of individuals and organizations. Present in 64 countries, Sodexo serves 100 million consumers every day with a unique offer of On-Site Services, Benefits & Rewards Services and Personal and Home Services. Sodexo offers its customers an integrated range of services, the result of more than 50 years of experience: from catering to reception, cleanliness, upkeep and technical maintenance of equipment and facilities, services and programs stimulating employee commitment to solutions that simplify and optimize the management of travel and business expenses, including home help services, day nurseries and concierge services.

Sodexo is a member of the CAC Next 20, ESG 80, FTSE 4 Good and DJSI indices.

Key figures

19.3 billion in consolidated revenue in euros from 2019 to 2020

420,000 employees in 31 August 2020

First private employer based in France all over the world

64 countries

100 million consumers served daily

10.3 billion of euros in market capitalization (as of January 7, 2021)

Contacts

Analysts and Investors Media
Virginia Jeanson
Tel. : +33 1 57 75 80 56
virginia.jeanson@sodexo.com
Mathieu Scaravetti
Tel. : +33 6 28 62 21 91
mathieu.scaravetti@sodexo.com


Contact Information:

Virginia Jeanson
Tel. : +33 1 57 75 80 56
virginia.jeanson@sodexo.com








Tags:    Wire, Disclosure Newswire, United States, English