| (in million euros) | FISCAL 2023 | FISCAL 2022 IFRS 5 restated |
|---|---|---|
| Profit for the year before tax | Profit for the year before tax FISCAL 2023749 |
Profit for the year before tax FISCAL 2022IFRS 5 restated 726 |
| Share of profit of companies accounted for using the equity method | Share of profit of companies accounted for using the equity method FISCAL 2023(12) |
Share of profit of companies accounted for using the equity method FISCAL 2022IFRS 5 restated (8) |
| Profit before tax excluding share of profit of companies accounted for using the equity method | Profit before tax excluding share of profit of companies accounted for using the equity methodFISCAL 2023737 | Profit before tax excluding share of profit of companies accounted for using the equity methodFISCAL 2022 IFRS 5 restated 718 |
| Tax rate applicable to Sodexo S.A. | Tax rate applicable to Sodexo S.A. FISCAL 202325.83% |
Tax rate applicable to Sodexo S.A. FISCAL 2022IFRS 5 restated 28.40% |
| Theoretical income tax (expense)/income | Theoretical income tax (expense)/incomeFISCAL 2023(191) | Theoretical income tax (expense)/incomeFISCAL 2022 IFRS 5 restated (204) |
| Effect of jurisdictional tax rate differences | Effect of jurisdictional tax rate differences FISCAL 202318 |
Effect of jurisdictional tax rate differences FISCAL 2022IFRS 5 restated 36 |
| Permanently non-deductible expenses or non-taxable income* | Permanently non-deductible expenses or non-taxableincome* FISCAL 2023(25) |
Permanently non-deductible expenses or non-taxableincome* FISCAL 2022IFRS 5 restated (6) |
| Other tax repayments/(charges), net | Other tax repayments/(charges), net FISCAL 202315 |
Other tax repayments/(charges), net FISCAL 2022IFRS 5 restated 6 |
| Tax loss carry-forwards used or recognized during the period but not recognized as a deferred tax asset in prior periods | Tax loss carry-forwardsused or recognized during the period but not recognized as a deferred tax asset in prior periods FISCAL 202320 |
Tax loss carry-forwardsused or recognized during the period but not recognized as a deferred tax asset in prior periods FISCAL 2022IFRS 5 restated 4 |
| Tax loss carry-forwards and temporary differences arising during the period or prior years but not recognized as a deferred tax asset | Tax loss carry-forwardsand temporary differences arising during the period or prior years but not recognized as a deferred tax asset FISCAL 2023(8) |
Tax loss carry-forwardsand temporary differences arising during the period or prior years but not recognized as a deferred tax asset FISCAL 2022IFRS 5 restated (38) |
| Actual income tax expense | Actual income tax expenseFISCAL 2023(171) | Actual income tax expenseFISCAL 2022 IFRS 5 restated (201) |
| Withholding taxes | Withholding taxes FISCAL 2023(10) |
Withholding taxes FISCAL 2022IFRS 5 restated (6) |
| TOTAL INCOME TAX EXPENSE | TOTAL INCOME TAX EXPENSEFISCAL 2023(181) | TOTAL INCOME TAX EXPENSEFISCAL 2022 IFRS 5 restated (206) |
*Including 17 million euros in France related to the operations prior to the spin-off project. This charge was offset by using of unrecognized tax losses and unrecognized tax credits.
The effective tax rate, calculated on profit for the period before tax and excluding the share of profit of companies accounted for using the equity method, went from 28.8% for Fiscal 2022 to 24.6% for Fiscal 2023. The decrease in the effective tax rate is mainly explained by the decrease in the CVAE rate in France and the improvement of results in countries where the deferred taxes assets generated by tax losses are not recognized as in France, or they are partially recognized as in Germany.
Movements in deferred taxes were as follows in Fiscal 2023:
| (in million euros) | AUGUST 31, 2022 | DEFERRED TAX BENEFIT/(EXPENSE) | DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME | CURRENCY TRANSLATION ADJUSTMENT AND OTHER | CLASSIFICATION AS ASSETS/ LIABILITIES HELD FOR SALE OR FOR DISTRIBUTION(1) | AUGUST 31, 2023 |
|---|---|---|---|---|---|---|
| Employee-related liabilities | Employee-related liabilities AUGUST 31, 2022146 |
Employee-related liabilities DEFERRED TAX BENEFIT/(EXPENSE) (19) |
Employee-related liabilities DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME 25 |
Employee-related liabilities CURRENCY TRANSLATION ADJUSTMENT AND OTHER (10) |
Employee-related liabilities CLASSIFICATION AS ASSETS/ LIABILITIES HELD FOR SALE OR FOR DISTRIBUTION (1)(6) |
Employee-related liabilities AUGUST 31, 2023136 |
| Fair value of financial instruments | Fair value of financial instruments AUGUST 31, 20223 |
Fair value of financial instruments DEFERRED TAX BENEFIT/(EXPENSE) — |
Fair value of financial instruments DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Fair value of financial instruments CURRENCY TRANSLATION ADJUSTMENT AND OTHER — |
Fair value of financial instruments CLASSIFICATION AS ASSETS/ LIABILITIES HELD FOR SALE OR FOR DISTRIBUTION (1)— |
Fair value of financial instruments AUGUST 31, 20233 |
| Goodwill | Goodwill AUGUST 31, 2022(240) |
Goodwill DEFERRED TAX BENEFIT/(EXPENSE) 7 |
Goodwill DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Goodwill CURRENCY TRANSLATION ADJUSTMENT AND OTHER 15 |
Goodwill CLASSIFICATION AS ASSETS/ LIABILITIES HELD FOR SALE OR FOR DISTRIBUTION (1)(11) |
Goodwill AUGUST 31, 2023(144) |
| Intangible assets | Intangible assets AUGUST 31, 2022(22) |
Intangible assets DEFERRED TAX BENEFIT/(EXPENSE) 22 |
Intangible assets DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Intangible assets CURRENCY TRANSLATION ADJUSTMENT AND OTHER 7 |
Intangible assets CLASSIFICATION AS ASSETS/ LIABILITIES HELD FOR SALE OR FOR DISTRIBUTION (1)74 |
Intangible assets AUGUST 31, 2023(4) |
| Other temporary differences | Other temporary differences AUGUST 31, 20228 |
Other temporary differences DEFERRED TAX BENEFIT/(EXPENSE) (34) |
Other temporary differences DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME (1) |
Other temporary differences CURRENCY TRANSLATION ADJUSTMENT AND OTHER 2 |
Other temporary differences CLASSIFICATION AS ASSETS/ LIABILITIES HELD FOR SALE OR FOR DISTRIBUTION (1)(11) |
Other temporary differences AUGUST 31, 2023(36) |
| Tax loss carry-forwards | Tax loss carry-forwards AUGUST 31, 202298 |
Tax loss carry-forwards DEFERRED TAX BENEFIT/(EXPENSE) 4 |
Tax loss carry-forwards DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Tax loss carry-forwards CURRENCY TRANSLATION ADJUSTMENT AND OTHER (2) |
Tax loss carry-forwards CLASSIFICATION AS ASSETS/ LIABILITIES HELD FOR SALE OR FOR DISTRIBUTION (1)(15) |
Tax loss carry-forwards AUGUST 31, 202385 |
| TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) | TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES)AUGUST 31, 2022(7) | TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) DEFERRED TAX BENEFIT/(EXPENSE) (20) |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME 24 |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) CURRENCY TRANSLATION ADJUSTMENT AND OTHER 12 |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) CLASSIFICATION AS ASSETS/ LIABILITIES HELD FOR SALE OR FOR DISTRIBUTION (1)31 |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES)AUGUST 31, 202340 |
| Of which deferred tax assets | Of which deferred tax assetsAUGUST 31, 2022154 | Of which deferred tax assets DEFERRED TAX BENEFIT/(EXPENSE) — |
Of which deferred tax assets DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Of which deferred tax assets CURRENCY TRANSLATION ADJUSTMENT AND OTHER — |
Of which deferred tax assets CLASSIFICATION AS ASSETS/ LIABILITIES HELD FOR SALE OR FOR DISTRIBUTION (1)— |
Of which deferred tax assetsAUGUST 31, 2023192 |
| Of which deferred tax liabilities | Of which deferred tax liabilitiesAUGUST 31, 2022(161) | Of which deferred tax liabilities DEFERRED TAX BENEFIT/(EXPENSE) — |
Of which deferred tax liabilities DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Of which deferred tax liabilities CURRENCY TRANSLATION ADJUSTMENT AND OTHER — |
Of which deferred tax liabilities CLASSIFICATION AS ASSETS/ LIABILITIES HELD FOR SALE OR FOR DISTRIBUTION (1)— |
Of which deferred tax liabilitiesAUGUST 31, 2023(152) |
(1) The reclassifications made during the period correspond to the reclassification of Benefits & Rewards Services activities (Pluxee) accruals in assets held for sale or for distribution and related liabilities (see note 3.2).
Movements in deferred taxes were as follows in Fiscal 2022:
| (in million euros) | SEPTEMBER 1, 2021 | DEFERRED TAX BENEFIT/(EXPENSE) | DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME | CURRENCY TRANSLATION ADJUSTMENT AND OTHER | AUGUST 31, 2022, |
|---|---|---|---|---|---|
| Employee-related liabilities | Employee-related liabilities SEPTEMBER 1, 2021151 |
Employee-related liabilities DEFERRED TAX BENEFIT/(EXPENSE) (4) |
Employee-related liabilities DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME (22) |
Employee-related liabilities CURRENCY TRANSLATION ADJUSTMENT AND OTHER 21 |
Employee-related liabilities AUGUST 31, 2022,146 |
| Fair value of financial instruments | Fair value of financial instruments SEPTEMBER 1, 202116 |
Fair value of financial instruments DEFERRED TAX BENEFIT/(EXPENSE) (13) |
Fair value of financial instruments DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME (2) |
Fair value of financial instruments CURRENCY TRANSLATION ADJUSTMENT AND OTHER 2 |
Fair value of financial instruments AUGUST 31, 2022,3 |
| Goodwill | Goodwill SEPTEMBER 1, 2021(200) |
Goodwill DEFERRED TAX BENEFIT/(EXPENSE) (4) |
Goodwill DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Goodwill CURRENCY TRANSLATION ADJUSTMENT AND OTHER (36) |
Goodwill AUGUST 31, 2022,(240) |
| Intangible assets | Intangible assets SEPTEMBER 1, 2021(12) |
Intangible assets DEFERRED TAX BENEFIT/(EXPENSE) (6) |
Intangible assets DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Intangible assets CURRENCY TRANSLATION ADJUSTMENT AND OTHER (4) |
Intangible assets AUGUST 31, 2022,(22) |
| Other temporary differences | Other temporary differences SEPTEMBER 1, 202118 |
Other temporary differences DEFERRED TAX BENEFIT/(EXPENSE) (9) |
Other temporary differences DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME 1 |
Other temporary differences CURRENCY TRANSLATION ADJUSTMENT AND OTHER (2) |
Other temporary differences AUGUST 31, 2022,8 |
| Tax loss carry-forwards | Tax loss carry-forwardsSEPTEMBER 1, 202197 |
Tax loss carry-forwardsDEFERRED TAX BENEFIT/(EXPENSE) (9) |
Tax loss carry-forwardsDEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Tax loss carry-forwardsCURRENCY TRANSLATION ADJUSTMENT AND OTHER 10 |
Tax loss carry-forwardsAUGUST 31, 2022,98 |
| TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) | TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES)SEPTEMBER 1, 202170 | TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) DEFERRED TAX BENEFIT/(EXPENSE) (45) |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME (23) |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) CURRENCY TRANSLATION ADJUSTMENT AND OTHER (9) |
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES)AUGUST 31, 2022,(7) |
| Of which deferred tax assets | Of which deferred tax assetsSEPTEMBER 1, 2021176 | Of which deferred tax assets DEFERRED TAX BENEFIT/(EXPENSE) — |
Of which deferred tax assets DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Of which deferred tax assets CURRENCY TRANSLATION ADJUSTMENT AND OTHER — |
Of which deferred tax assetsAUGUST 31, 2022,154 |
| Of which deferred tax liabilities | Of which deferred tax liabilitiesSEPTEMBER 1, 2021(106) | Of which deferred tax liabilities DEFERRED TAX BENEFIT/(EXPENSE) — |
Of which deferred tax liabilities DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME — |
Of which deferred tax liabilities CURRENCY TRANSLATION ADJUSTMENT AND OTHER — |
Of which deferred tax liabilitiesAUGUST 31, 2022,(161) |
