Sodexo is a société anonyme (a form of limited liability company) registered in France, with its headquarters located in Issy-les-Moulineaux. Sodexo’s consolidated financial statements for the fiscal year ended August 31, 2022 were approved by the Board of Directors on October 25, 2022 and will be submitted to the Annual Shareholders Meeting on December 19, 2022.The numbers shown in the tables were prepared in thousands of euros and are presented in million euros (unless otherwise indicated).
While Fiscal 2021 was significantly impacted by the Covid-19 pandemic, the operating performance in Fiscal 2022 reflected strong recovery, with revenue reaching 21.1 billion euros which represents 97% of Fiscal 2019 revenues (adjusted for currencies). The trend improved throughout the year, with the last quarter back up at Fiscal 2019 levels.
As announced on July 1, 2022, the Group has decided to modify the organization of its On-site Services activity as of Fiscal 2023.The On-site Services organization will thus see its effectiveness enhanced with the transfer of the full accountability for operational management to the countries and regions, regrouped into three geographic zones: North America, Europe and Rest of the World.
These three zones will be led respectively by Sarosh Mistry, Sunil Nayak and Johnpaul Dimech. This simplification will bring agility and speed to execution.
This change in organization, progressively implemented from September through to December 2022, had no impact on Fiscal 2022 consolidated financial statements.
On March 11, 2022, the Group disposed of its global Childcare activities (France, Spain and Germany) to Grandir group for 197 million euros generating a disposal gain of 76 million euros (see note 4.2.2 “Other Operating income and expenses”), with Sodexo becoming a minority shareholder owning 19% of Grandir Group, recognized as a non consolidated investment for 93 million euros (see note 12.3.1 “Current and non-current financial assets”).
Sodexo does not have activities in Ukraine and stopped its activities in Russia, which represented less than 1% of Group revenues. Sodexo transferred ownership of its activities in the country to local management who will continue operations via an independent structure and brand. No material impact in the consolidated financial statements has been recognized.
Pursuant to European regulation 1606/2002 of July 19, 2002, the consolidated financial statements of the Sodexo Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and approved by the European Union as of the year end. A comprehensive list of the accounting standards adopted by the European Union is available for consultation on the European Commission website at https://ec.europa.eu/commission/index_en.
Information for the comparative year presented has been prepared using the same principles.
The Group does not apply IFRS standards that are not approved by the European Union at the closing date. During the past three years, considering the Company closing date, the IFRS application dates as approved by the European Union have been the same as those for the IFRS standards published by the IASB.
Furthermore, the Group did not elect to early adopt non-mandatory new standards, amendments and interpretations for Fiscal 2022. The Group does not anticipate the application of non-mandatory new standards, amendments and interpretations to have a material impact on its consolidated financial statements.
With reference to the interest rate benchmarks reform, the Group finalized discussions with counterparties to negotiate the change of benchmarks for the main instruments impacted (primarily the multicurrency confirmed credit facility; see note 12.4.1). As of August 31, 2022, the Group exposure to indexed financial instruments to benchmarks that will disappear, and whose maturity date is greater than the date of implementation of the reform, is limited and no significant impact on the consolidated financial statements is anticipated when the new reform will be implemented.
