A total goodwill amount of 76 million euros was recognized during Fiscal 2024, mainly due to the acquisitions of A.H. Management, K&R Vending Services and Legend Food Services in the United States and of Compass Management Services and Shanghai Eurest Food Technologies in China.
The table below shows the values of the assets acquired and liabilities assumed as of the acquisition date. The values are estimated provisionally as of August 31, 2024 for most of Fiscal 2024 acquisitions:
| (in million euros) | AUGUST 31, 2024 |
|---|---|
| Intangible assets | Intangible assets AUGUST 31, 202417 |
| Property, plant and equipment | Property, plant and equipment AUGUST 31, 20249 |
| Current financial assets | Current financial assets AUGUST 31, 20247 |
| Trade and other current operating assets | Trade and other current operating assets AUGUST 31, 202425 |
| Cash and cash equivalents | Cash and cash equivalents AUGUST 31, 20248 |
| Trade and other payables | Trade and other payables AUGUST 31, 2024(47) |
| TOTAL IDENTIFIABLE NET ASSETS | TOTAL IDENTIFIABLE NET ASSETSAUGUST 31, 202419 |
| CONSIDERATION TRANSFERRED | CONSIDERATION TRANSFERREDAUGUST 31, 202495 |
| GOODWILL | GOODWILLAUGUST 31, 202476 |
Business combinations impacts the cash flow statement as follows:
| Price paid during the fiscal year* | 100 |
|---|---|
| Cash acquired | 8 |
| Business combinations | 92 |
* Including earn out paid related to prior acquisitions to Fiscal 2024.
Companies acquired during Fiscal 2024 were integrated from the date of acquisition, and contributed for 104 million euros to revenue and for 7 million euros to the underlying operating profit.
Goodwill changes during Fiscal 2024 and the comparative period are presented in note 6.1 “Goodwill”.
In accordance with IFRS 5 “Non-current assets held for sale and discontinued operations”, when the Group expects to recover the value of an asset or a group of assets through its sale rather than by its use, or when the asset or group of assets is held for distribution to owners of the Group, this asset or group of assets is presented on a separate line “Assets held for sale or for distribution” of the consolidated statement of financial position. Non-current assets classified as such are measured at the lower of their carrying value and their fair value net of disposal costs and therefore are no longer subject to depreciation. The liabilities relating to the asset or group of assets are also presented on a separate line of the consolidated statement of financial position (“Liabilities directly associated with assets held for sale or for distribution”).
In addition, when the group of assets held for sale or for distribution represents a separate major line of business or geographic area of operations, and thus meets the definition of a discontinued operation according to IFRS 5, its contribution to income and cash flows is presented on separate lines in the consolidated income statement (line “Net profit from discontinued operation”) and the consolidated cash flow statement (separate lines within each cash flow category). The comparative consolidated income statement and consolidated cash flow statement are restated as if the activity had met the criteria for a discontinued operation as of the opening of the comparative period.
The Group continued its portfolio rationalization by disposing of a certain numbers of its activities, resulting in a net gain on disposal of 90 million euros recognized in other operating expenses and income during the First half Fiscal 2024 (cf. note 4.2.2 “Other operating expenses and income”), corresponding mainly to the net gain on disposal of 77 million euros for the disposal of its worldwide Homecare services including mainly subsidiaries in the United States, in the United Kingdom, and in Scandinavian countries at the end of October 2023, disposed for a net selling price of 146 million euros.
The completion of the spin-off of Pluxee (ex-Benefits & Rewards Services activity) has occurred on February 1, 2024, its contribution to the net result and to the cash flows over 5 months (from September 1, 2023 to January 31, 2024) as well as the negative impact of the recycling of the currency translation adjustment reserves mainly from the Brazilian Real and Venezuelan Bolivar for -540 million euros are presented on separate lines in the consolidated income statement (line "Net income from discontinued operations") and in the consolidated cash flow statement (separate lines within each category cash flow). For reminder, this activity met the definition of a discontinued operation as of August 31, 2023 as set out by IFRS 5: separate major line of business, the net assets of which are available for immediate distribution in their present condition, and the distribution of which is highly probable (see note 3.2 in consolidated financial statements as of August 31, 2023 for further details).
Choice of the accounting method for the deconsolidation
Sodexo has elected to account for the demerger using Pluxee’s net book value. Therefore, the deconsolidation does not generate any loss or gain in the consolidated income statement as of August 31, 2024, except for the negative impact of the recycling of the currency translation adjustment reserves related to Pluxee (ex- Benefits & Rewards Services activity). Ths loss will not have any impact on cashflow or dividend distribution capacity.
