Fiscal 2023 Rest of the World revenues were 4.1 billion euros. Organic Growth was up +11.5%. Excluding a change in revenue recognition on project works of one of our large Energy & Resources contracts, from a gross to net basis reflecting the changes in the way 2 operate this contract, the organic growth would have been +14.6%. The change was implemented during the fourth quarter, with retroactive impact for the full year.
Business & Administrations organic growth was up +11.5%, impacted by the accounting change, but +14.9% excluding this effect, driven by an increase in project works and successful negotiations on price adjustments in Energy & Resources, impact of the new openings and strong pricing in Corporate Services and mining in Latin America and Brazil, and strong performance in India and South East Asia, in particular in the tech sector.
Healthcare & Seniors revenue was +6.2% organically, with good development in India and China, partly offset by a decrease in Brazil as a result of the exit of several low performing contracts.
Education organic growth was +35.1%, with all schools reopened in China and strong volume growth in India.
Fiscal 2023 underlying operating profit from Sodexo continuing operations was 976 million euros, up +19.7%, or +17.1% excluding the currency effect. The Underlying operating profit margin, including Corporate expenses, was 4.3%, up +30 bps. The currency mix effect was negligible.
| (in million euros) | UNDERLYING OPERATING PROFIT FISCAL 2023 | DIFFERENCE | DIFFERENCE (EXCLUDING CURRENCY EFFECT) | UNDERLYING OPERATING PROFIT MARGIN FISCAL 2023 | DIFFERENCE IN MARGIN | DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT) |
|---|---|---|---|---|---|---|
| North America | North America UNDERLYING OPERATING PROFIT FISCAL 2023 582 |
North America DIFFERENCE +23.6% |
North America DIFFERENCE (EXCLUDING CURRENCY EFFECT) +18.7% |
North America UNDERLYING OPERATING PROFIT MARGIN FISCAL 2023 5.6% |
North America DIFFERENCE IN MARGIN +30 bps |
North America DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT) +20 bps |
| Europe | Europe UNDERLYING OPERATING PROFIT FISCAL 2023 299 |
Europe DIFFERENCE -0.5% |
Europe DIFFERENCE (EXCLUDING CURRENCY EFFECT) +2.2% |
Europe UNDERLYING OPERATING PROFIT MARGIN FISCAL 2023 3.7% |
Europe DIFFERENCE IN MARGIN -20 bps |
Europe DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT) -20 bps |
| Rest of the World | Rest of the World UNDERLYING OPERATING PROFIT FISCAL 2023 192 |
Rest of the World DIFFERENCE +23.1% |
Rest of the World DIFFERENCE (EXCLUDING CURRENCY EFFECT) +19.2% |
Rest of the World UNDERLYING OPERATING PROFIT MARGIN FISCAL 2023 4.7% |
Rest of the World DIFFERENCE IN MARGIN +40 bps |
Rest of the World DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT) +30 bps |
| UNDERLYING OPERATING PROFIT BEFORE CORPORATE COSTS | UNDERLYING OPERATING PROFIT BEFORE CORPORATE COSTS UNDERLYING OPERATING PROFIT FISCAL 2023 1,073 |
UNDERLYING OPERATING PROFIT BEFORE CORPORATE COSTS DIFFERENCE +15.8% |
UNDERLYING OPERATING PROFIT BEFORE CORPORATE COSTS DIFFERENCE (EXCLUDING CURRENCY EFFECT) +13.6% |
UNDERLYING OPERATING PROFIT BEFORE CORPORATE COSTS UNDERLYING OPERATING PROFIT MARGIN FISCAL 2023 4.7% |
UNDERLYING OPERATING PROFIT BEFORE CORPORATE COSTS DIFFERENCE IN MARGIN +10 bps |
UNDERLYING OPERATING PROFIT BEFORE CORPORATE COSTS DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT) +10 bps |
| Corporate expenses | Corporate expenses UNDERLYING OPERATING PROFIT FISCAL 2023 (97) |
Corporate expenses DIFFERENCE -13.4% |
Corporate expenses DIFFERENCE (EXCLUDING CURRENCY EFFECT) -13.4% |
Corporate expenses UNDERLYING OPERATING PROFIT MARGIN FISCAL 2023
|
Corporate expenses DIFFERENCE IN MARGIN
|
Corporate expenses DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT)
|
| UNDERLYING OPERATING PROFIT (continuing activities) | UNDERLYING OPERATING PROFIT (continuing activities) UNDERLYING OPERATING PROFIT FISCAL 2023 976 |
UNDERLYING OPERATING PROFIT (continuing activities) DIFFERENCE +19.7% |
UNDERLYING OPERATING PROFIT (continuing activities) DIFFERENCE (EXCLUDING CURRENCY EFFECT) +17.1% |
UNDERLYING OPERATING PROFIT (continuing activities) UNDERLYING OPERATING PROFIT MARGIN FISCAL 2023 4.3% |
UNDERLYING OPERATING PROFIT (continuing activities) DIFFERENCE IN MARGIN +30 bps |
UNDERLYING OPERATING PROFIT (continuing activities) DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT) +30 bps |
The increase in profitability in Fiscal 2023 was driven by operating leverage from higher revenue, especially in North America, combined with rigorous inflation management including sustained price increases and mitigation actions, improved supply chain economics, and disciplined corporate cost management.
| (in million euros) | FISCAL 2023 | FISCAL 2022 restated | DIFFERENCE | DIFFERENCE CONSTANT RATES |
|---|---|---|---|---|
| UNDERLYING OPERATING PROFIT | UNDERLYING OPERATING PROFIT FISCAL 2023 976 |
UNDERLYING OPERATING PROFIT FISCAL 2022 restated 815 |
UNDERLYING OPERATING PROFIT DIFFERENCE +19.7% |
UNDERLYING OPERATING PROFIT DIFFERENCE CONSTANT RATES +17.1% |
| Net scope change impacts | Net scope change impacts FISCAL 2023 (7) |
Net scope change impacts FISCAL 2022 restated 52 |
Net scope change impacts DIFFERENCE
|
Net scope change impacts DIFFERENCE CONSTANT RATES
|
| Restructuring and rationalization costs | Restructuring and rationalization costs FISCAL 2023 (45) |
Restructuring and rationalization costs FISCAL 2022 restated (4) |
Restructuring and rationalization costs DIFFERENCE
|
Restructuring and rationalization costs DIFFERENCE CONSTANT RATES
|
| Amortization of purchased intangible assets | Amortization of purchased intangible assets FISCAL 2023 (36) |
Amortization of purchased intangible assets FISCAL 2022 restated (36) |
Amortization of purchased intangible assets DIFFERENCE
|
Amortization of purchased intangible assets DIFFERENCE CONSTANT RATES
|
| M&A costs, spin-off costs & Other | M&A costs, spin-off costs & Other FISCAL 2023 (41) |
M&A costs, spin-off costs & Other FISCAL 2022 restated (15) |
M&A costs, spin-off costs & Other DIFFERENCE
|
M&A costs, spin-off costs & Other DIFFERENCE CONSTANT RATES
|
| OTHER OPERATING INCOME AND EXPENSES | OTHER OPERATING INCOME AND EXPENSES FISCAL 2023 (129) |
OTHER OPERATING INCOME AND EXPENSES FISCAL 2022 restated (3) |
OTHER OPERATING INCOME AND EXPENSES DIFFERENCE
|
OTHER OPERATING INCOME AND EXPENSES DIFFERENCE CONSTANT RATES
|
| OPERATING PROFIT | OPERATING PROFIT FISCAL 2023 847 |
OPERATING PROFIT FISCAL 2022 restated 812 |
OPERATING PROFIT DIFFERENCE +4.3% |
OPERATING PROFIT DIFFERENCE CONSTANT RATES +2.5% |
| Net financial expense | Net financial expense FISCAL 2023 (101) |
Net financial expense FISCAL 2022 restated (87) |
Net financial expense DIFFERENCE
|
Net financial expense DIFFERENCE CONSTANT RATES
|
| Pre-tax profit excluding share of profit from Equity method companies | Pre-tax profit excluding share of profit from Equity method companies FISCAL 2023 737 |
Pre-tax profit excluding share of profit from Equity method companies FISCAL 2022 restated 718 |
Pre-tax profit excluding share of profit from Equity method companies DIFFERENCE
|
Pre-tax profit excluding share of profit from Equity method companies DIFFERENCE CONSTANT RATES
|
| Tax charge* | Tax charge *FISCAL 2023 (181) |
Tax charge *FISCAL 2022 restated (206) |
Tax charge *DIFFERENCE
|
Tax charge *DIFFERENCE CONSTANT RATES
|
| CONTINUING OPERATIONS NET INCOME (GROUP SHARE) | CONTINUING OPERATIONS NET INCOME (GROUP SHARE) FISCAL 2023 560 |
CONTINUING OPERATIONS NET INCOME (GROUP SHARE) FISCAL 2022 restated 514 |
CONTINUING OPERATIONS NET INCOME (GROUP SHARE) DIFFERENCE
|
CONTINUING OPERATIONS NET INCOME (GROUP SHARE) DIFFERENCE CONSTANT RATES
|
| UNDERLYING NET PROFIT | UNDERLYING NET PROFIT FISCAL 2023 659 |
UNDERLYING NET PROFIT FISCAL 2022 restated 525 |
UNDERLYING NET PROFIT DIFFERENCE +25.5% |
UNDERLYING NET PROFIT DIFFERENCE CONSTANT RATES +24.1% |
* Fiscal 2023 effective tax rate is 24.6%, compared to an ETR of 28.8% in Fiscal 2022.
