As part of its food or other material supply contracts with manufacturers and distributors, the Group can earn discounts, rebates, or credits related to purchases made under those contracts. Vendor Discounts and Allowances (VDA) are earned on the volume of materials purchased under the contract, on the periodic purchase volumes exceeding certain contractually-defined thresholds, or as fixed amounts in exchange for certain commitments such as vendor exclusivity arrangements. The Group retains VDAs to the extent consistent with the Food or Facilities Management services contract signed with the client and applicable law.
VDAs are typically recognized as a reduction to the cost of sales in the period the purchases are made based on the volume of materials purchased in the period and the contractual VDA rate. VDAs earned based on purchase volumes reaching contractually-defined thresholds are recognized in proportion to the purchases made as soon as the Group considers it probable that the thresholds will be reached. If the Group does not consider it probable that its purchase volumes will reach the contractually-defined thresholds, any VDAs earned are recognized if and when the thresholds are reached. Fixed-amount VDAs are recognized immediately unless certain conditions need to be met in order for them to be earned or if there is a clear link between the amount promised and the future purchase volumes. In such cases, fixed-amount VDAs are recognized over the period of the related commitment.
The cash flow statement analyzes changes in net cash and cash equivalents, defined as cash and cash equivalents less current bank overdrafts and credit bank balances payable on demand that form an integral component of treasury management.
In accordance with IFRS 8 “Operating segments“, the segment information presented below has been prepared based on internal management data as monitored since the first quarter of Fiscal 2023 by the Sodexo Leadership Team, which is Sodexo’s chief operating decision-maker.
The Group Revenue and Underlying operating profit are followed by region. These regions meet the definition of operating segments under IFRS 8.
Sodexo’s operating segments and groups of operating segments are as follows:
The operating segments that have been aggregated carry out similar operations – both in terms of type of services rendered and processes and methods used to deliver the services – and have similar economic characteristics (notably in terms of margins they generate).
Segment assets and liabilities are not presented as they are not included in the chief operating decision-maker’s measurement of segment performance.
No single Group client or contract accounts contribute for more than 2% of the consolidated revenues.
| FISCAL 2024 (in million euros) | NORTH AMERICA | EUROPE | REST OF THE WORLD | CORPORATE EXPENSES | GROUP TOTAL |
|---|---|---|---|---|---|
| Revenues | RevenuesNORTH AMERICA11,111 | RevenuesEUROPE8,448 | RevenuesREST OF THE WORLD4,239 | RevenuesCORPORATE EXPENSESnot-included | RevenuesGROUP TOTAL23,798 |
| Underlying operating profit* | Underlying operating profit*NORTH AMERICA 650 |
Underlying operating profit*EUROPE 339 |
Underlying operating profit*REST OF THE WORLD 206 |
Underlying operating profit*CORPORATE EXPENSES (86) |
Underlying operating profit*GROUP TOTAL 1,109 |
* Including Group’s share of profit of companies accounted for using the equity method that directly contribute to the Group’s business and excluding other operating income and expenses.
| FISCAL 2023(in million euros) | NORTH AMERICA | EUROPE | REST OF THE WORLD | CORPORATE EXPENSES | GROUP TOTAL |
|---|---|---|---|---|---|
| Revenues | RevenuesNORTH AMERICA10,479 | RevenuesEUROPE8,071 | RevenuesREST OF THE WORLD4,087 | RevenuesCORPORATE EXPENSESnot-included | RevenuesGROUP TOTAL22,637 |
| Underlying operating profit* | Underlying operating profit*NORTH AMERICA 582 |
Underlying operating profit*EUROPE 299 |
Underlying operating profit*REST OF THE WORLD 192 |
Underlying operating profit*CORPORATE EXPENSES (97) |
Underlying operating profit*GROUP TOTAL 976 |
* Including Group’s share of profit of companies accounted for using the equity method that directly contribute to the Group’s business and excluding other operating income and expenses.
