| (in million euros) | FISCAL 2024 | FISCAL 2023 |
|---|---|---|
| UNDERLYING OPERATING PROFIT | UNDERLYING OPERATING PROFITFISCAL 20241,109 | UNDERLYING OPERATING PROFITFISCAL 2023976 |
| Net impact related to consolidation scope changes | Net impact related to consolidation scope changes FISCAL 202490 |
Net impact related to consolidation scope changes FISCAL 2023(7) |
| Restructuring and rationalization costs | Restructuring and rationalization costs FISCAL 2024(65) |
Restructuring and rationalization costs FISCAL 2023(45) |
| Amortization of purchased intangible assets | Amortization of purchased intangible assets FISCAL 2024(35) |
Amortization of purchased intangible assets FISCAL 2023(36) |
| Other | Other FISCAL 2024(48) |
Other FISCAL 2023(41) |
| OTHER OPERATING INCOME AND EXPENSES | OTHER OPERATING INCOME AND EXPENSESFISCAL 2024(58) | OTHER OPERATING INCOME AND EXPENSESFISCAL 2023(129) |
| OPERATING PROFIT | OPERATING PROFITFISCAL 20241,051 | OPERATING PROFITFISCAL 2023847 |
| Net financial expense | Net financial expense FISCAL 2024(63) |
Net financial expense FISCAL 2023(101) |
| Net income before tax & shares accounted for equity method | Net income before tax & shares accounted for equity methodFISCAL 2024 983 |
Net income before tax & shares accounted for equity methodFISCAL 2023 737 |
| Tax charge | Tax charge FISCAL 2024(249) |
Tax charge FISCAL 2023(181) |
| NET PROFIT FROM CONTINUING OPERATIONS (GROUP SHARE) | NET PROFIT FROM CONTINUING OPERATIONS (GROUP SHARE)FISCAL 2024738 | NET PROFIT FROM CONTINUING OPERATIONS (GROUP SHARE)FISCAL 2023560 |
| UNDERLYING NET PROFIT FROM CONTINUING OPERATIONS (GROUP SHARE) | UNDERLYING NET PROFIT FROM CONTINUING OPERATIONS (GROUP SHARE)FISCAL 2024775 | UNDERLYING NET PROFIT FROM CONTINUING OPERATIONS (GROUP SHARE)FISCAL 2023659 |
Other operating income and expenses amounted to -58 million euros compared to -129 million euros in the previous year. The main elements of the period were a net gain of 90 million euros related to the scope changes, principally the disposal of the Homecare business, partly offsetting restructuring expenses, which accelerated in the second half, as well as the spin-off costs, M&A costs and amortization of acquisition-related assets.
As a result, the Operating profit is 1,051 million euros compared to 847 million euros in the previous year.
Fiscal 2024 Net financial expenses decreased to 63 million euros, against 101 million euros in the previous year, which included 14 million euros of costs linked to the bond consent process for the Pluxee spin-off. The rest of the improvement was mainly due to a more favorable currency impact and some specific gains in Fiscal 2024 including compensatory interests in Brazil and the revaluation of the Group's participation in Grandir (Childcare).
The blended cost of debt at Fiscal 2024 year-end was at 1.8%, 10 bps higher than at Fiscal 2023 year-end due to the reimbursement of two bonds in November 2023 and January 2024 which were both at very low interest rates, as well as increased costs associated with higher dollar floating rates. Of the 137 million euros of Gross borrowing costs for Fiscal 2024 (cf. note 12.1 to the consolidated financial statements), 88 million euros relates to the Group's bonds and other committed banking facilities, and 49 million euros relates to cash pool mechanism costs. Interest income from cash pooling is included in the 67 million euros of Interest income from short-term bank deposits and equivalent).
The tax charge was up to 249 million euros, leading to an Effective Tax Rate of 25.4% against 24.6% in the prior year. The effect of the non taxable capital gain on the Homecare disposal and the utilization of previously unrecognized tax assets due to better results in France was offset by the update of the risk related to the tax exposure in France.
The share of profit of other companies accounted for using the equity method was 13 million euros compared to 12 million euros last year. Profit attributed to non-controlling interests was 9 million euros compared to the previous year amount of 8 million euros.
As a result, Group net profit from continuing activities was up +31.8% and amounted to 738 million euros, against 560 million euros in Fiscal 2023. Underlying net profit adjusted for Other operating income and expenses net of tax and exceptional taxes, reached 775 million euros, compared to 659 million euros in Fiscal 2023, up +17.6%.
| (in million euros) | FISCAL 2024 | FISCAL 2023 |
|---|---|---|
| Group Net Profit from continuing operations | Group Net Profit from continuing operations FISCAL 2024738 |
Group Net Profit from continuing operations FISCAL 2023560 |
| Group Net Profit from discontinued operations | Group Net Profit from discontinued operations FISCAL 2024(570) |
Group Net Profit from discontinued operations FISCAL 2023234 |
| GROUP NET PROFIT (Group share) | GROUP NET PROFIT (Group share)FISCAL 2024168 | GROUP NET PROFIT (Group share)FISCAL 2023794 |
Given the spin-off of Pluxee from February 1, 2024, the contribution of discontinued operations to Fiscal 2024 full year numbers is the same as in the First half Fiscal 2024.
Fiscal 2024 Net profit from discontinued operations amounts to -570 million euros, against +234 million euros in the previous year. This result is composed of:
None of these items impact the Fiscal 2024 dividend as the pay-out ratio is based on the Underlying net profit of Sodexo continuing activities only.
