Sodexo hails ongoing recovery, reports 18.8% revenue increase in 2022's Q1

In its first quarterly report for fiscal 2022, Paris-based catering and foodservice firm showed revenue reaching 95% of pre-COVID levels, reflecting recovery in all segments and geographies it serves.

Sodexo's first quarter-revenue rose to 5.26 billion euros ($5.95 billion) from 4.43 billion a year earlier, up 18.8% year-on-year including a net contribution from acquisitions The company said that analysts had on average expected revenue of 5.24 billion euros.

Revenue for the company's onsite services grew 17.9%. Sodexo's healthcare and seniors and schools segments are now well above pre-COVID levels at, respectively,105% and 104% of fiscal 2019 revenue, adjusted for currencies.

Corporate services, sports and leisure, and universities all increased substantially during the quarter, as employees returned to their offices, students to their universities and stadiums and convention centers reopened. As a result, foodservice also recovered strongly in the quarter, to reach 83% of fiscal 2019 levels.

Sodexo said its benefits and rewards services are back on a growth path, relative to the pre-COVID levels at 107% of of fiscal 2019.

During this first quarter, Sodexo continued to reinforce its commitments to reduce its environmental footprint. It plans to to be carbon neutral in its direct operations by 2025 and to reduce carbon emissions across its scopes by 55% by 2030.

In a conference call, Sodexo said the search for a new chief executive to replace Denis Machuel is moving forward, but the company is taking time to choose the right person. Sophie Bellon has been serving as interim chief executive since Machuel's exit in July. 

All caterers have been hit hard by the pandemic due to recurring lockdowns, at-home work, and event cancellations and reductions. Sodexo advised in a conference call that the return to remote working this winter could affect its volumes.