3.1 Fiscal year highlights – strong increase in revenues and profitability
3.1.1 Fiscal 2022 operating performance
The operating performance in Fiscal 2022 reflected strong recovery from the Covid-19 pandemic, successful pass-through of inflation and a return to positive net new business.
Fiscal 2022 Revenues reached 21.1 billion euros, representing 97% of Fiscal 2019 revenues, adjusted for currencies. The trend improved throughout the year, with the last quarter back up at Fiscal 2019 levels. Fiscal 2022 organic growth was +16.9%. The Underlying operating profit margin increased +170 bps to 5.0%, despite the inflationary pressures. Net profit rebounded to
695 million euros, multiplied by five year on year, and above the level of Fiscal 2019. Underlying net profit doubled to 699 million euros compared to the previous year.
On-site Services retention increased +140 bps to 94.5% and development was up +150 bps to 7.5%. As a result, net new business signed during the year was positive for the first time since 2018, with a particularly strong contribution from North America.
3.1.2 A record year for new business signatures
Fiscal 2022 was rich in new signatures and renewals of contracts during the year and here are some examples:
- Sodexo has strengthened its commercial relationship with Ardent Health Services, a company specializing in healthcare in the United States, by signing a new contract aimed at improving the experience of patients and employees. Growing from 4 to 50 locations, this reaffirmed partnership will employ more than 1,500 Sodexo employees, providing patient and employee catering and nutrition services as well as infection prevention services at Ardent locations across six states;
- Sodexo has become an Official Supporter of the Paris Olympic Games 2024, through Sodexo Live!, which is set to provide catering at the athletes’ village, as well as public catering on around 15 competition sites. For a five-week period, Sodexo Live! will employ 1,000 people per day at the village;
- Sodexo and the University Hospitals (UH) network (23 hospitals, more than 50 health centers and outpatient facilities and over 200 physician offices) are renewing and expanding their collaboration in the United States. Indeed, Sodexo provides UH with a range of services, including patient nutrition and retail food, facilities and construction management, as well as healthcare technology management over a period of 5 years, renewable for 3 years;
- Sodexo has signed a new contract with Austrian Post to develop a digital solution for its meal vouchers. The call for tenders launched in 2020 was won by the Benefits & Rewards Services activity. This fully digital and highly secure solution has been activated with 8,000 merchants and integrates mobile payments for more than 16,000 Austrian Post employees.
3.1.3 Portfolio management
The Group continued to sell non-strategic activities and geographies, reducing from 56 countries in 2021 to 53 countries today. This more active management of the portfolio aims to reduce the presence in certain countries where the size and/or growth opportunities were insufficient.
Sodexo transferred ownership of its activities in Russia, which represented less than 1% of Group revenue, to the local management who will continue operations in Russia via an independent structure and brand.
The sale of Sodexo’s Childcare services to the Grandir Group was completed in March 2022.
Le Lido was sold to the Accor Group in February 2022.
3.1.4 New acquisitions to develop Advanced Food Models
As part of the acceleration of the deployment of advanced food models, a number of acquisitions and strategic investments were made during the period:
- Sodexo acquired Frontline Food Services in North America, a major player in the fast-growing smart take-out convenience market. With this acquisition, Sodexo is strengthening its multi-channel offering, notably via click and collect, take-out, delivery and flexible and self-service on-site distribution formats;
- Sodexo has further invested in Meican in China, leveraging online ordering, mobile apps and smart services to enhance the food offering. This also brings the opportunity of signing new contracts with smaller customers;
- the larger-scale deployment of on-site brands and service offerings accelerated during the period with the development of The Good Eating Company in the United States and new contract signings in the tech and finance sectors for new, more modern, convenience and off-site production offers;
- the Group has also invested organically and through acquisitions in new off-site production centers in Boston and Beijing.
