1. Integrated Report
1. INTEGRATED REPORT
Interview with Sophie Bellon,
Chairwoman of the Board of Directors and Interim Chief Executive Officer
We are beginning a new stage of Sodexo’s development. We are taking action straight away to increase our competitiveness and accelerate our transformation to secure solid, profitable and responsible growth over the long term.
You have announced very solid annual results. Has Sodexo emerged from the Covid-19 crisis?
“Solid” is the right word – we have been resilient, as activity has picked up. We exceeded our revenue and profitability targets for Fiscal 2021, with a progressive recovery quarter on quarter. We have also continued to progress towards our non-financial goals, such as gender equality – today, 43% of Group senior executives are women – and reducing food waste, which was nearly halved at the close to 900 sites where we have rolled out our WasteWatch program. And I would like to take this opportunity to recognize the outstanding work of our teams last year, in a context that remained very challenging.
As a result of the renegotiation of many contracts, strict cost control and the contribution from our GET efficiency program, and despite lower revenues again in Fiscal 2021, our Underlying operating margin came to 3.3% for the year, compared to 2.9% in the previous year. Our financial situation is solid, with a robust balance sheet and very strong cash flow. And we propose to resume our dividend policy this year.
Some of our operations were naturally hit harder than others by the health crisis: for instance, people are returning to offices and convention centers only gradually, while in the Healthcare, Seniors, Schools and Benefits & Rewards Services, by the fourth quarter of Fiscal 2021, activity was back up to the levels in Fiscal 2019. We are on track to regain our pre-pandemic performance and then, over the medium term, exceed it. Today, our teams are focused more than ever on our fundamentals: client retention, growth opportunities, operational excellence, employee engagement and, above all, consumer satisfaction.
On this last point, consumer power has developed even more during the pandemic, and the expectations of our clients and end-users of our services have evolved. And now even more than before the crisis, companies are perceived as legitimate, and even indispensable, players when it comes to social impact and social and environmental responsibility.
Clearly, the pandemic has amplified structural trends on our activities and professions.