In Fiscal 2024, the Group delivered at the top of the guidance. Organic revenue growth was at +7.9%, compared to guidance of +6% to +8%, and Underlying operating profit margin at 4.7%, up +40 bps, year-on-year compared to guidance of +30 to +40 bps.
Fiscal 2024 solid growth resulted from a good level of inflation pass-through in pricing, acceleration in net new development contribution and some volume growth from the final effects of post-Covid recovery as well as a spectacular year for Sodexo Live! consisting of some major sports events (including Rugby World Cup in France and the Paris Olympics), new contracts, and increased travelers in the airport lounges.
The increase in the Underlying operating profit margin of +40 bps was due to operating leverage from higher revenue, rigorous inflation management, enhanced on-site productivity, supply management optimization and cost control.
Net profit from continuing activities (Group share) was 738 million euros, up +31.8% versus the prior year. Underlying net profit from continuing activities (Group share) reached 775 million euros, an increase of +17.6% compared to Fiscal 2023.
During Fiscal 2024, the Group also successfully improved its financial position, generating 661 million euros in free cash flow, resulting in a reduction in financial leverage to 1.7 times compared to 2.2 at the end of the previous fiscal year, aligning within the target range.
Fiscal 2024 signatures amounted to 1.6 billion euros. The year saw numerous new contract wins during the year and here are some examples:
The Pluxee spin-off was successfully concluded with the detachment and first listing of Pluxee shares on Euronext Paris on February 1, 2024, and the delivery of the Pluxee shares to shareholders on February 5, 2024, in line with the plan. The resolution proposed by the Board of Directors to approve the exceptional distribution in kind of one Pluxee share for every Sodexo share held was adopted at 99.96% during the Shareholders Meeting held on January 30, 2024. Following the Pluxee spin-off, Sodexo is now a pure player in Food and FM services.
As a consequence of the spin-off, Pluxee's assets and liabilities, including the cash, have been deconsolidated as of January 31, 2024. The profit and cash flows generated by Pluxee from the start of the Fiscal Year until the spin-off are reported as discontinued operations.
Homecare Disposal: Sodexo sold its worldwide Homecare division including subsidiaries in the U.S., UK, Ireland, France, Scandinavian countries and Brazil at the end of October 2023 for a net selling price of 146 million euros, including a net gain of 77 million euros recorded in Other Operating income and expenses. This sale marked another step forward in the implementation of our 2025 strategic plan, to focus on serving sustainable food and valuable experiences to our clients and consumers.
Expansion of InReach in North America: Sodexo has expanded its multi-channel food offerings in the United States, through five strategic bolt-on acquisitions during the year (inlcuding A.H. Management, K&R Vending Services and Legend Food Services). These acquisitions are providing our traditional sites with a complementary portfolio of services, including micro markets, pantry, office coffee and vending, and increasing the Group's footprint in the region and leveraging the tech platform acquired in 2022.
