Sodexo Q3 2021 revenue increases 19%, beating expectations on a strong rebound

Sodexo S.A. (NYSE Euronext Paris FR 0000121220-OTC: SDXAY) reported revenue of 4,484 million euro, up 14.7% compared with the previous year’s same quarter. Sodexo said currencies impacted its revenues negatively by 4.2% and its net M&A by 0.2%, resulting in group organic revenue growth of 19.0%.

Sodexo’s organic revenue for its onsite services grew 18.8%, reflecting a momentous recovery from the first lockdowns in March 2020. The company reported a strong recovery in foodservices, up 26%, and its more resilient facilities management unit, up 11%.

KEY SEGMENT POINTS 

• Business and Administrations was up 10.1%, at 78% of Ffiscal 2019 levels. Corporate services recovery remains slow in North America and was impacted by the April lockdown in France. However, the performance elsewhere was solid, and well above fiscal 2019 in Asia and Latin America.
• Sports and Leisure recovery is very progressive in North America, with airline lounges beginning to open, but still very largely closed in Europe.
• Energy & Resources and Government & Agencies are continuing to rebound.
• Healthcare and Seniors was up 9.2%, back up at 96% of fiscal 2019 levels. While hospitals are seeing more elective surgery in the quarter, visitors remain excluded in most hospitals and therefore the retail activity remains, in most cases, closed. 
• Education was up 73.5%, at 79% of Fiscal 2019 levels. Schools in Europe were fully open during the quarter, even though there were occasional class closures and a French lockdown in April. In North America, schools reopened, running at about 89% of fiscal 2019 levels. While Universities saw more students on campus, the run rate was still well below schools.

“Third quarter growth in revenues is better than expected in all activities and segments driven notably by the significant recovery compared to the first lockdowns in March 2020,” said Sodexo chief executive Denis Machuel.

"Since then, the rebound has been progressive despite the third quarter being impacted by the April lockdown in France and the emergence of new variants of the COVID-19 virus,” Machuel continued. “For the fourth quarter, we expect the recovery to continue, particularly in the Americas.

“The expected fourth quarter progress should result in better-than-expected organic growth and margin in the second half which has led to an upward revision in our guidance,” he added.

Click here to see Sodexo’s full news release at Globe Newswire.

Founded in Marseille, France, in 1966 by Pierre Bellon, Sodexo operates in 64 countries and serves 100 million consumers daily. Today, it is headquarted in Issy-les-Moulineaux, a suburb of Paris.