Other operating income and expenses of Sodexo continuing operations amounted to -129 million euros compared to -3 million euros in the previous year. This significant increase is due to M&A costs, one-off spin-off costs of Pluxee this year (12 million euros) and restructuring costs principally related to the change in organization from global segments to geographies. Prior year also benefited from 52 million euros of net gains related to the disposals program, including the Childcare business.
As a result, the Operating Profit is 847 million euros compared to 812 million euros in the previous year.
Fiscal 2023 Net financial expenses increased to 101 million euros against 87 million euros in the previous year. The increase is mainly due to 14 million euros costs linked to the bond consent process related to the spin-off project of Pluxee. The blended cost of debt at Fiscal 2023 year end was 1.7%, 10 basis points higher than at Fiscal 2022 year end, mainly due to the increased costs associated with the USD floating rates swaps.
The tax charge was down significantly to 181 million euros, despite a higher pre-tax profit, leading to an Effective Tax Rate of 24.6% against 28.8% in the prior year. This improvement is explained by the decrease in the CVAE rate in France and the better pre-tax results in France where deferred tax assets are not recognized. In addition, improved financial outlook in some geographies (mainly Germany and Netherlands) have led to a recognition of deferred tax assets related to prior years losses, excluding which, the Effective Tax Rate would have been 25.5%.
The share of profit of other companies accounted for using the equity method was 12 million euros, slightly up compared to 8 million euros last year. Profit attributed to non-controlling interests was 8 million euros compared to the previous year amount of 6 million euros.
As a result, Net income from continuing operations (Group share) amounted to 560 million euros, against 514 million euros in Fiscal 2022. Underlying net profit adjusted for Other operating income and expenses net of tax reached 659 million euros, compared to 525 million euros in Fiscal 2022.
The following income statement for Pluxee is built by difference between Group (before classification of Pluxee as discontinued operation) and Sodexo income statement under IFRS 5. Therefore, it does not reflect Pluxee stand-alone. Notably, it is pre-Group Corporate cost allocation, and the Effective Tax Rate is under-estimated.
| (in million euros) | FISCAL 2023 | FISCAL 2022 restated | DIFFERENCE | DIFFERENCE |
|---|---|---|---|---|
| Revenue | Revenue FISCAL 2023 1,099 |
Revenue FISCAL 2022 restated 865 |
Revenue DIFFERENCE +27.1% |
Revenue DIFFERENCE +26.5% |
| Organic revenue growth | Organic revenue growth FISCAL 2023 +26.9% |
Organic revenue growth FISCAL 2022 restated +14.2% |
Organic revenue growth DIFFERENCE
|
Organic revenue growth DIFFERENCE
|
| UNDERLYING OPERATING PROFIT | UNDERLYING OPERATING PROFIT FISCAL 2023 364 |
UNDERLYING OPERATING PROFIT FISCAL 2022 restated 248 |
UNDERLYING OPERATING PROFIT DIFFERENCE +47.0 % |
UNDERLYING OPERATING PROFIT DIFFERENCE +47.3% |
| UNDERLYING OPERATING PROFIT MARGIN | UNDERLYING OPERATING PROFIT MARGIN FISCAL 2023 33.1% |
UNDERLYING OPERATING PROFIT MARGIN FISCAL 2022 restated 28.6% |
UNDERLYING OPERATING PROFIT MARGIN DIFFERENCE +450 bps |
UNDERLYING OPERATING PROFIT MARGIN DIFFERENCE +480 bps |
| Other operating expenses | Other operating expenses FISCAL 2023 (30) |
Other operating expenses FISCAL 2022 restated (3) |
Other operating expenses DIFFERENCE +900.0 % |
Other operating expenses DIFFERENCE +867.3 % |
| OPERATING PROFIT | OPERATING PROFIT FISCAL 2023 334 |
OPERATING PROFIT FISCAL 2022 restated 245 |
OPERATING PROFIT DIFFERENCE +36.6% |
OPERATING PROFIT DIFFERENCE +37.4% |
| Net financial expense | Net financial expense FISCAL 2023 (18) |
Net financial expense FISCAL 2022 restated (3) |
Net financial expense DIFFERENCE
|
Net financial expense DIFFERENCE
|
| Net income before tax & shares accounted for equity method | Net income before tax & shares accounted for equity method FISCAL 2023 316 |
Net income before tax & shares accounted for equity method FISCAL 2022 restated 242 |
Net income before tax & shares accounted for equity method DIFFERENCE
|
Net income before tax & shares accounted for equity method DIFFERENCE
|
| Tax charge | Tax charge FISCAL 2023 (80) |
Tax charge FISCAL 2022 restated (58) |
Tax charge DIFFERENCE
|
Tax charge DIFFERENCE
|
| PLUXEE NET PROFIT (GROUP SHARE) | PLUXEE NET PROFIT (GROUP SHARE) FISCAL 2023 234 |
PLUXEE NET PROFIT (GROUP SHARE) FISCAL 2022 restated 181 |
PLUXEE NET PROFIT (GROUP SHARE) DIFFERENCE +29.3% |
PLUXEE NET PROFIT (GROUP SHARE) DIFFERENCE +25.6% |
| PLUXEE UNDERLYING NET PROFIT (GROUP SHARE) | PLUXEE UNDERLYING NET PROFIT (GROUP SHARE) FISCAL 2023 249 |
PLUXEE UNDERLYING NET PROFIT (GROUP SHARE) FISCAL 2022 restated 174 |
PLUXEE UNDERLYING NET PROFIT (GROUP SHARE) DIFFERENCE +43.1% |
PLUXEE UNDERLYING NET PROFIT (GROUP SHARE) DIFFERENCE +38.9 % |
Fiscal 2023 Pluxee revenue amounted to 1,099 million euros, up +27.1%, helped by a +0.6% impact from currencies. As a result, organic growth was +26.9%.
| REVENUES BY ACTIVITY (in million euros) | FISCAL | FISCAL | ORGANIC GROWTH |
|---|---|---|---|
| Employee Benefits | Employee Benefits FISCAL 916 |
Employee Benefits FISCAL 711 |
Employee Benefits ORGANIC GROWTH +28.5 % |
| Services Diversification* | Services Diversification* FISCAL 183 |
Services Diversification* FISCAL 154 |
Services Diversification* ORGANIC GROWTH +19.8 % |
| PLUXEE | PLUXEE FISCAL 1,099 |
PLUXEE FISCAL 865 |
PLUXEE ORGANIC GROWTH +26.9 % |
* Including Incentive & Recognition, Mobility & Expenses and Public Benefits.
Employee Benefits organic growth was +28.5%, accelerating quarter by quarter, and reaching +35.7% in the fourth quarter. Issue volume amounted to 16.6 billion euros for the year and was up +13.8% organically, boosted by double digit growth across all the product range supported by strong portfolio growth and a dynamic trajectory in face value, especially in Brazil.
Services Diversification was up +19.8% organically for the year, resulting from the strong performance of public benefits, boosted by two major contracts in Austria and Romania.
| REVENUES BY REGION (in million euros) | FISCAL | FISCAL | ORGANIC GROWTH |
|---|---|---|---|
| Europe, USA and Asia | Europe, USA and Asia FISCAL 669 |
Europe, USA and Asia FISCAL 558 |
Europe, USA and Asia ORGANIC GROWTH +24.7 % |
| Latin America | Latin America FISCAL 430 |
Latin America FISCAL 307 |
Latin America ORGANIC GROWTH +31.0 % |
| PLUXEE | PLUXEE FISCAL 1,099 |
PLUXEE FISCAL 865 |
PLUXEE ORGANIC GROWTH +26.9 % |
